August

Foreign Direct Investment in the United StatesPreliminary Results From the Benchmark Survey

By William J. Zeile

P from ’s latestbenchmark survey of foreign direct invest-

ment in the United States () indicate thatthe share of U.S. affiliates of foreign companiesin U.S. gross product originating in private non-bank industries increased slightly in , whiletheir share in U.S. nonbank private employmentfell slightly.

. A U.S. affiliate is a U.S. business enterprise in which there is foreigndirect investment—that is, in which a single foreign person owns or con-trols, directly or indirectly, percent or more of the voting securities of anincorporated U.S. business enterprise or an equivalent interest in an unin-corporated U.S. business enterprise. The term “U.S. affiliate” denotes thatthe affiliate is located in the United States; in this article, “affiliate” and “U.S.affiliate” are used interchangeably.

A “person” is any individual, corporation, branch, partnership, associatedgroup, association, estate, trust, or other organization and any government(including any corporation, institution, or other entity or instrumentality ofa government). A “foreign person” is a person who resides outside the States, the District of Columbia, the Commonwealth of Puerto Rico, and allU.S. territories and possessions.

The financial and operating data of U.S. affiliates cover the entireoperations of the U.S. affiliate, irrespective of the percentage of foreignownership.

Table 1.—Percentage of U.S. Private-Industry Gross Productand Employment Accounted for by Nonbank U.S.Affiliates, 1977–97

Gross product Employment

1977 .......................................................... 2.3 1.71978 .......................................................... 2.5 1.91979 .......................................................... 2.9 2.31980 .......................................................... 3.4 2.71981 .......................................................... 4.2 3.11982 .......................................................... 4.3 3.21983 .......................................................... 4.3 3.31984 .......................................................... 4.4 3.41985 .......................................................... 4.3 3.41986 .......................................................... 4.3 3.51987 .......................................................... 4.5 3.71988 .......................................................... 5.0 4.31989 .......................................................... 5.4 4.91990 .......................................................... 5.5 5.11991 .......................................................... 5.9 5.31992 .......................................................... 5.8 5.11993 .......................................................... 5.8 5.01994 .......................................................... 6.0 4.91995 .......................................................... 5.9 4.91996 .......................................................... 6.2 5.01997 .......................................................... 6.3 4.9

NOTES.—For improved comparability with U.S.-affiliate gross product, gross product originatingin private industries was adjusted to exclude gross product originating in depository institutionsand private households, imputed rental income from owner occupied housing, and businesstransfer payments.

For improved comparability with U.S.-affiliate employment, U.S. employment in private indus-tries was adjusted to exclude employment in depository institutions and private households.

For consistency with the coverage of the data on U.S. employment in private industries, U.S.-affiliate employment in Puerto Rico, in ‘‘other U.S. areas,’’ and in ‘‘foreign’’ was excluded fromthe U.S.-affiliate total when the employment shares were computed. Because the data used tocalculate gross product are not broken down by geographic location in the survey forms filedby affiliates, this adjustment could not be made in computing affiliate shares of gross product.

The U.S.-affiliate share of gross product was .percent, up slightly from . percent in andup considerably from . percent in (table and chart ). The years of increases, whichfollowed several years of mild fluctuation, partlyreflected a renewed surge in new foreign directinvestment in the United States after a falloffin the early ’s. In the wake of the invest-ment surge in the late ’s, the affiliate share ofgross product had increased substantially, from. percent in to . percent in .

Because U.S. affiliates tend to be relativelyconcentrated in less labor-intensive sectors ofthe economy (such as manufacturing), the

All data on the overall operations of nonbank U.S. affiliates are on a fiscalyear basis. Thus, for , an individual affiliate’s fiscal year is its financialreporting year that ended in calender year .

. According to data from ’s annual survey of new foreign invest-ments, outlays by foreign direct investors to acquire or establish businesses inthe United States increased from . billion in to . billion in and . billion in (the previous high was . million in ). Out-lays by foreign direct investors surged to a record . billion in , whichsuggests that the affiliate share of U.S. private-industry will increasefurther when the figures for are available next year. See Mahnaz Fahim-Nader, “Foreign Direct Investment in the United States: New Investment in,” S C B (June ): –.

• August

. The estimates for data items on the operations of nonbank affiliatesin are revised; for most of the key data items, the revisions from thepreliminary estimates resulted in changes of to percent in the totals.

.

Data on Foreign Direct Investment in

. For a more detailed discussion of the differences between these three sets of data,see Alicia M. Quijano, “A Guide to Statistics on Foreign Direct Investment in theUnited States,” S (February ): –. This guide is available on ’s Website at <www.bea.doc.gov/bea/ail.htm>.

For a comparison of the data on affiliate operations with the data on new investment,see the appendix “Sources of Data” in Mahnaz Fahim-Nader and William J. Zeile,“Foreign Direct Investment in the United States: New Investment in and AffiliateOperations in ,” S (May ): –.

by industry using a system based on the StandardIndustrial Classification (). The betterreflects new and emerging industries, industriesinvolved in the production of advanced technolo-gies, and the growth and diversification of serviceindustries.

In this article, the data on gross productand other key items by industry are presentedon both the new -based classifications andthe -based classifications; the data for earlieryears are presented on the -based classifica-tions, the only basis on which these data areavailable. The data on operationsare among the first data to be collected on a basis, so industry-level comparisons withother data on U.S.-business operations are neces-sarily limited (in some cases, special tabulationsof the data on an basis are presentedto facilitate comparisons with other data thatare available only on an basis). In a re-lated change, petroleum is no longer shown as

the United States

collects three broad sets of data on foreign direct investmentin the United States (): () Financial and operating data of U.S.affiliates, () data on U.S. businesses newly acquired or establishedby foreign direct investors (new investments), and () balance of pay-ments and direct investment position data. This article presents thefinancial and operating data; new investment data were publishedin “Foreign Direct Investment in the United States: New Invest-ment in ” in the June issue of the S CB; the balance of payments and direct investment positiondata were published in the articles “The International InvestmentPosition of the United States at Yearend ,” “U.S. InternationalTransactions, First Quarter ,” and “Direct Investment Positionsfor : Country and Industry Detail,” in the July issue of theS.

Each of the three data sets focuses on a distinct aspect of .The financial and operating data provide a picture of the overallactivities of the U.S. affiliates; the new investment data provide infor-mation about U.S. businesses that are newly acquired or establishedby foreign direct investors, regardless of whether the invested fundswere raised in the United States or abroad; and the balance of pay-ments and direct investment position data cover transactions andpositions of both new and existing U.S. affiliates with their foreignparents.

Financial and operating data of U.S. affiliates.—The data on the over-all operations of U.S. affiliates are collected in ’s annual andbenchmark surveys of . The data cover U.S. affiliates’ balance

sheets and income statements, employment and compensation ofemployees, trade in goods, research and development expenditures,sources of finance, and selected data by State. In addition, thegross product of affiliates is estimated from data reported in thesesurveys.

Except in benchmark survey years, these data, unlike the newinvestment data, cover only nonbank affiliates. (The preliminarybenchmark survey data presented in this article cover nonbank af-filiates; the final data, which will be published next year, will alsocover bank affiliates.) The financial and operating data for affiliatesare on a fiscal year basis. The data cover the entire operations of theU.S. affiliate, irrespective of the percentage of foreign ownership.

New investment data.—The data on outlays by foreign direct in-vestors to acquire or establish affiliates in the United States arecollected in ’s survey of new . The data on investment out-lays and on the number and types of investment and investors areon a calendar year basis.

In addition, the new investment survey collects selected data onthe operations of the newly acquired or established affiliates. Fornewly acquired affiliates, these data are for (or as of the end of)the most recent fiscal year preceding the acquisition, and for newlyestablished businesses, they are projected for (or as of the end of)the first year of operation. The data cover the entire operations ofthe business, irrespective of the percentage of foreign ownership.

Balance of payments and the direct investment position data.—Thesedata are collected in the quarterly survey of . The data coverthe U.S. affiliate’s transactions and positions with its foreign parentor other members of its foreign parent group, so these data focuson the foreign parent’s share, or interest, in the affiliate rather thanon the affiliate’s overall size or level of operations. The major itemsincluded in the U.S. balance of payments are direct investment cap-ital flows, direct investment income, royalties and license fees, andother services transactions with the foreign parent group.

share of U.S. affiliates in U.S. private nonbankemployment—. percent—in was less thantheir share in U.S. . The affiliate share of em-ployment was down slightly from . percent in and was considerably below the peak of .percent in .

The benchmark survey results reported in thisarticle are preliminary and cover only nonbankU.S. affiliates. The final results, which will bereleased next year, will also cover bank affili-ates. (For information, see the box “The Benchmark Survey” on the next page.)

In the benchmark survey, a new industryclassification system that is based on the NorthAmerican Industry Classification System ()was used to classify the data of the affiliates (seethe box “New Industry Classifications” on page); in previous surveys, the data were classified

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August •

a separate major industry in the tables; instead,the various petroleum-related activities are dis-tributed among the major industry groupsto which they belong.

The following are additional highlights of thesurvey results for :

• By country of ownership, the United King-dom remained the largest investing countryin terms of affiliate gross product, followedby Japan and Germany. Canada, which hadranked as the third-largest investing countryin , had dropped to fifth in , belowFrance.

• By sector, the affiliate share of em-ployment was highest in mining, followedby manufacturing and information. Withinmanufacturing, the affiliate share was highestin the chemicals industry.

• By State, the affiliate share of total businessemployment was highest in Hawaii, followedby South Carolina and North Carolina.

• The net income of affiliates surged percentto a new high of . billion, mainly as a re-sult of increased operating profits. The surgecontinues a pattern of improved performance

.

The

since , when affiliates as a group reportedrecord net losses.

• The rate of return on assets of nonfinan-cial affiliates increased to . percent in from . percent in . In comparison,the rate of return for all U.S. nonfinan-cial corporations remained unchanged at .percent.

• Expenditures on research and development() performed by affiliates accountedfor about percent of the per-formed by all U.S. businesses. The ra-tio of to gross product for affili-ates was percent, twice the ratio for allU.S. businesses. More than half of the performed by affiliates was accountedfor by affiliates in chemicals manufactur-ing and in computer and electronic productmanufacturing.

• The share of affiliate employment cov-ered by collective bargaining agreementswas percent, down from per-cent in , but higher than the -percent share for all U.S. workers. Inretail trade, the union-represented share

Benchmark Survey

. For example, the total assets of exempt affiliates was equal to only . percent ofthe total assets of the covered affiliates.

Benchmark surveys are ’s most comprehensive surveys of for-eign direct investment, in terms of both coverage of companies andsubject matter. The survey covered all U.S. affiliates of foreigndirect investors that had assets, sales, or net income of more than million. It collected detailed information on the financial structureand operations of U.S. affiliates and on the transactions and posi-tions between the U.S. affiliates and their foreign parents.

The concepts and definitions underlying the data are es-sentially the same as those for the benchmark survey. Themethodology of the survey will be published with the final sur-vey results next year.

For the financial and operating data, the data from the bench-mark survey extend universe estimates that begin with the year and that are derived from both annual and benchmark surveys. Inaddition, the data will be used in preparing annual estimates insubsequent nonbenchmark years; these estimates are derived by ex-trapolating forward the benchmark survey data by the sample datareported in ’s annual surveys of foreign direct investment in theUnited States.

Many of the items for which data were collected in the bench-mark survey are also collected annually, but other items are collectedonly in benchmark survey years. These items include expendi-tures on research and development performed by affiliates (whetherfinanced by themselves or by others), the number of employees cov-ered by collective bargaining agreements, U.S. exports and importsof goods by product and by country of destination or origin, andU.S. imports of goods by intended use.

Affiliates with total assets, sales, or net income of more than million were required to complete a benchmark survey report for

. Affiliates that did not meet these criteria were exempt fromreporting, but they had to file an exemption form with informa-tion on the affiliates’ total assets, sales, and net income. Becauseonly very small affiliates were exempt from reporting, the exclusionof their data from the preliminary results has virtually no effect interms of value.

Estimates for these affiliates will be included in the

final benchmark survey data published next year.In order to reduce the reporting burden of small enterprises, the

exemption level for the benchmark survey was raised to mil-lion; the benchmark survey covered affiliates with assets, sales,or net income of more than million. This change has virtuallyno effect on the published totals because the amounts involved arenegligible.

The preliminary results from the benchmark survey include esti-mates of data for reports that could not be fully processed in timefor publication. The final results will incorporate data from the re-ports received and processed after the publication of the preliminaryresults. Revisions are generally expected to be small, but they couldbe sizable for some countries, industries, States, or items.

To minimize the burden on respondents to the benchmarksurvey, the long form that requested detailed information was filedonly by affiliates with assets, sales, or net income of more than million. The short form was filed by smaller affiliates; for theseaffiliates, estimated the items that are only on the long form,so that the published results are presented in the same detail for allaffiliates.

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• August

•

.

. Office of Management aUnited States, (Washingtthe Internet at <www.census.g

. See Office of Managem, (Washington, : U.S. G

of employment for affiliates was muchhigher than the share for all workers;in manufacturing, the share for affili-ates was slightly lower than that for allworkers.

Affiliates accounted for percent of U.S.exports of goods and for percent ofU.S. imports of goods. These shares were

New Industry Classification

nd Budget, North American Industry Classification System:on, , ). Information on can be accessed onov/epcd/www/naics.html>.ent of Budget, Standard Industrial Classification Manual,overnment Printing Office, ).

. Specifically, manufacturingand “informationdivision; and broaportation, commun

For additional intions (and thereforsee : UnitedBusiness Statistics Saccessed on the Intion of -basedEconomic AnalysisSurveys, which canbetween the new

on ’s Web site

down somewhat from earlier years, dueto reduced exports and imports by whole-sale trade affiliates. By product, affiliatesaccounted for percent of U.S. exportsof mineral fuels and lubricants and for percent of U.S. imports of road vehiclesand parts. By major U.S. trading part-ner, affiliates accounted for more than half

s

the information sector includes publishing, which is included in theindustry division; “motion picture and sound recording industries”

and data processing services,” which are included in the servicesdcasting and communications, which are included in the trans-

ication, and public utilities division.formation on the differences between the and the classifica-

e between the new -based, and old -based, classifications),States, and U.S. Census Bureau, Economic Census, Coreeries, Advance Report (Washington, : March ), which can be

This article introduces two changes in industry classification forthe financial and operating data. First, the data presen-ted here are based on new industry classifications derived from the North American Industry Classification System (). Sec-ond, petroleum is no longer shown as a separate major industryin the tables; instead, beginning with , the various petroleum-related activities are distributed among the major industrygroups or sectors to which they belong.

The is the new industry classification system of theUnited States, Canada, and Mexico.

It supplants the Stan-

dard Industrial Classification () system that has been used by theUnited States.

In the , classification is based on a production-

oriented economic concept in which economic units with similarproduction processes are classified in the same industry. In the ,classification is based on the production process for some indus-tries and on the type of product produced for others. In addition,the better reflects new and emerging industries, industries in-volved in the production of advanced technologies, and the growthand diversification of service industries.

The classifications had to be adapted for use in ’ssurveys of direct investment, because the surveys collect data at theenterprise level while the classifies establishments within anenterprise. The major adaptation is the use of industry classificationsthat are less detailed than those in . Many direct investmententerprises are active in several industries, and it is not meaningfulto classify all their data in a single industry if that industry is de-fined too narrowly. Accordingly, the new -based InternationalSurvey Industry () classifications are limited to industries,compared with , U.S. industries in . For the most part, the classifications are equivalent to four-digit industries. (Atits most detailed level, classifies industries at a six-digit level.)

The benchmark survey data are the first data on to beclassified by industry using the new -based classifications.Other data (including the – financial and operating datapresented in this article) are classified by industry using the previous classifications that were based on the .

Many of the industries correspond directly to indus-tries; similarly, many of the -based industries corresponddirectly to -based industries. However, many of these indus-tries have been rearranged among the higher level groups in whichthey appear. In addition, several new, higher level groups havebeen introduced in . At the highest level of aggregation, the industry groups—termed “sectors”—in the replace the

industry divisions in the . Several of the (and -based) sectors do not correspond directly to these (and -based) industry divisions. For example, the new “information” sectorconsists of industry groups from several industry divisions.

The second major change in industry presentation is that thevarious petroleum subindustries are no longer grouped in the ma-jor industry group “petroleum.” Instead, beginning with the benchmark survey data, these subindustries are spread among the-based sectors; for example, oil and gas extraction is nowincluded in mining, petroleum refining is in manufacturing, andgasoline stations are in retail trade. For earlier years, petroleum isshown as a separate major industry group because petroleum-relatedactivities accounted for a major portion of all direct investment ac-tivity; however, their relative importance has declined significantlyin recent years, reducing the need for a separate group. Accord-ingly, the industry presentation of the direct investment data hasbeen changed to bring it into conformity with that used for mostother data on the U.S. economy.

To facilitate the assessment of the impact of these two changesand to provide a bridge between data classified on the old basis anddata classified on the new basis, the data are presented on bothbases. Data on the new basis are shown in tables , , , , , ,., and .; data on the old basis are shown in tables , , , ,., ., ., and ..

The changes in industry classification introduced here for the financial and operating data will be carried over to other di-rect investment series in the coming years. Next year, the data onU.S. businesses newly acquired or established by foreign direct in-vestors will be published based on the new classifications (see thebox “Data on Foreign Direct Investment in the United States”). Dataon U.S. direct investment abroad () will be collected using thenew classifications, beginning with the benchmark survey of, and preliminary results will be published in . Estimatesof balance of payments transactions and direct investment positionsof and will be published on the new classification basisafter the underlying data have been rebenchmarked to the and benchmark surveys.

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ternet at <www.census.gov/epcd/www/econ.html>. For a descrip- classifications (and their relationship to the ), see Bureau of

, Guide to Industry and Foreign Trade Classifications for Internationalbe accessed at <www.bea.doc.gov/bea/surveys.htm>. A concordance

-based codes and the old -based codes will be available<www.bea.doc.gov> later this summer.

August •

of U.S. exports of goods to Japan and formore than half of U.S. imports of goodsfrom Japan, Switzerland, Germany, andSweden.

The rest of this article consists of two parts.The first part discusses trends and patterns in af-filiate operations using the data items that arecollected in both the benchmark and the annualsurveys of . The second part presents find-ings from the data items that are collected onlyin benchmark surveys.

Trends and Patterns in Affiliate Operations

In , gross product (or value added) of U.S. af-filiates increased percent to billion, follow-ing an increase of percent in (table ). Incomparison, gross product originating in privatenonbank industries in current dollars increased percent in and in . The increase inaffiliate gross product in reflected both newinvestments—that is, outlays by foreign investors

Table 2.—Selected Data of Nonba

Billions of dollars

Thousandsof

employeesGrossproduct Sales Net

income

Com-pensation

ofemployees

1977 ............................ 35.2 194.0 4.0 18.8 1,218.71978 ............................ 42.9 241.5 4.8 24.2 1,429.91979 ............................ 55.4 327.9 7.3 31.7 1,753.21980 ............................ 70.9 412.4 8.8 40.0 2,033.91981 ............................ 98.8 510.2 11.2 54.8 2,416.61982 ............................ 103.5 518.1 3.8 61.5 2,448.11983 ............................ 111.5 536.6 5.6 66.8 2,546.51984 ............................ 128.8 593.6 9.6 73.2 2,714.31985 ............................ 134.9 633.0 5.4 79.9 2,862.21986 ............................ 142.1 672.0 2.5 86.5 2,937.91987 ............................ 157.9 744.6 7.8 96.0 3,224.31988 ............................ 190.4 886.4 12.0 119.6 3,844.21989 ............................ 223.4 1,056.6 9.3 144.2 4,511.51990 ............................ 239.3 1,175.9 –4.5 163.6 4,734.51991 ............................ 257.6 1,185.9 –11.0 176.0 4,871.91992 ............................ 266.3 1,232.0 –21.3 182.1 4,715.41993 ............................ 285.7 1,329.4 –4.4 193.0 4,765.61994 ............................ 313.0 1,443.5 8.1 200.6 4,840.51995 ............................ 322.6 1,544.6 15.5 206.4 4,941.81996 r .......................... 358.1 1,667.6 24.4 220.6 5,105.01997 p .......................... 384.9 1,717.2 42.5 230.3 5,164.3

Percent change frompreceding year:1987 ........................ 11.1 10.8 218.1 11.0 9.71988 ........................ 20.6 19.0 54.1 24.6 19.21989 ........................ 17.4 19.2 –22.9 20.5 17.41990 ........................ 7.1 11.3 n.m. 13.5 4.91991 ........................ 7.7 .9 n.m. 7.6 2.91992 ........................ 3.4 3.9 n.m. 3.5 –3.21993 ........................ 7.3 7.9 n.m. 6.0 1.11994 ........................ 9.5 8.6 n.m. 3.9 1.61995 ........................ 3.1 7.0 90.5 2.9 2.11996 ........................ 11.0 8.0 57.4 6.9 3.31997 ........................ 7.5 3.0 74.5 4.4 1.2

p Preliminary.r Revised.* Less than 0.05 percent.1. Research and development funded by affiliates, whether performed by the affiliates themselve2. The foreign parent group consists of (1) the foreign parent, (2) any foreign person, proceeding

to acquire or establish U.S. businesses—and ex-pansions in the operations of existing affiliates.The U.S.-affiliate share of total U.S. gross prod-uct originating in private industries increased to. percent, the highest share in the two decadesfor which annual data on affiliate operations havebeen collected.

Partly as a result of new foreign investmentin U.S. businesses, the total assets of affiliatesincreased percent, following a -percent in-crease. However, affiliate sales increased only percent—the lowest rate of increase since —mainly because of selloffs of large affiliates inwholesale trade (an industry characterized bylarge sales relative to assets or other measures ofaffiliate operations).

Reflecting the continued expansion of theU.S. economy, expenditures on new plant andequipment by affiliates increased percent. (Incomparison, private fixed nonresidential invest-ment in the United States increased percentin .) The net income of affiliates increased

nk U.S. Affiliates of Foreign Direct Investors, 1977–97

Billions of dollars

Totalassets

Gross property, plant,and equipment Expendi-

tures fornew plant

andequipment

Researchand

develop-ment

expendi-tures 1

U.S. exports of goodsshipped by affiliates

U.S. imports of goodsshipped to affiliates

Total

Of which:Commer-

cialproperty

Total

Of which:To theforeignparentgroup 2

Total

Of which:From theforeignparentgroup 2

143.5 66.8 n.a. 7.6 0.9 24.9 11.7 43.9 30.9181.2 80.7 n.a. 9.3 1.2 32.2 16.6 56.6 39.5228.6 101.2 n.a. 11.2 1.6 44.3 22.1 63.0 45.3291.3 127.8 n.a. 16.9 1.9 52.2 21.0 75.8 47.0407.0 188.0 n.a. 26.7 3.1 64.1 26.9 82.3 52.2476.4 225.2 n.a. 28.1 3.7 60.2 25.0 84.3 51.9531.7 244.0 n.a. 23.2 4.2 53.9 22.6 81.5 54.8602.5 269.5 n.a. 25.2 4.7 58.2 27.1 100.5 70.5741.1 295.2 n.a. 28.9 5.2 56.4 25.9 113.3 81.7838.0 320.2 n.a. 28.5 5.8 49.6 21.9 125.7 93.4943.7 353.3 89.9 33.0 6.5 48.1 19.1 143.5 108.2

1,200.8 418.1 104.0 44.3 7.8 69.5 26.4 155.5 118.41,431.3 489.5 124.8 55.2 9.5 86.3 34.3 171.8 129.91,550.2 578.4 146.5 69.6 11.5 92.3 37.8 182.9 137.51,752.6 640.1 165.8 69.8 11.9 96.9 42.2 178.7 132.21,825.2 660.8 172.6 61.4 13.7 103.9 48.8 184.5 137.82,065.8 705.7 173.9 63.2 14.2 106.6 47.4 200.6 150.82,206.7 754.4 173.1 68.2 15.6 120.7 51.1 232.4 174.62,388.7 769.5 168.4 74.5 17.5 135.2 57.2 250.8 191.22,681.7 825.7 167.6 90.6 18.0 140.9 60.8 268.7 197.73,034.4 866.2 172.2 100.8 19.7 140.9 62.8 261.5 195.5

12.6 10.3 n.a. 15.8 12.4 –3.0 –12.6 14.2 15.827.3 18.3 15.7 34.2 20.1 44.6 38.3 8.4 9.419.2 17.1 20.0 24.5 20.8 24.1 29.7 10.5 9.88.3 18.2 17.4 26.1 21.7 6.9 10.2 6.5 5.8

13.1 10.7 13.1 .3 3.0 5.0 11.8 –2.3 –3.84.1 3.2 4.1 –12.1 15.4 7.2 15.5 3.2 4.3

13.2 6.8 .7 3.1 3.7 2.6 –2.9 8.7 9.46.8 6.9 –.4 7.8 9.6 13.2 8.0 15.8 15.88.2 2.0 –2.7 9.3 12.7 12.0 11.9 7.9 9.5

12.3 7.3 –.5 21.6 2.5 4.2 6.3 7.1 3.413.2 4.9 2.7 11.2 9.5 (*) 3.3 –2.7 –1.1

s or by others. up the foreign

parent’s ownership chain, that owns more than 50 percent of the person below it, up to and including the UBO,and (3) any foreign person, proceeding down the ownership chain(s) of each of these members, that is ownedmore than 50 percent by the person above it.

n.a. Not available.n.m. Not meaningful.

• August

. The is that person, proceeding up a U.S. affiliate’s ownershipchain, beginning with and including the foreign parent, that is not ownedmore than percent by another person. The foreign parent is the firstforeign person in the affiliate’s ownership chain. Unlike the foreign parent,the of an affiliate may be located in the United States. The ofeach U.S. affiliate is identified to ascertain the person that ultimately ownsor controls the U.S. affiliate and that therefore ultimately derives the benefitsfrom ownership or control.

percent, continuing a sharp uptrend from thelarge net losses recorded in .

Employment by affiliates increased only per-cent, following a -percent increase. In compari-son, total U.S. employment in private industriesincreased percent in ; much of this increasewas in service industries, where foreign directinvestment activity is relatively sparse. U.S. em-ployment in manufacturing, where foreign directinvestment is relatively concentrated, decreased percent. The share of private industry employ-ment that was accounted for by U.S. affiliatesdipped slightly from . percent in to .percent in .

The slower growth in affiliate employment in was the result of a smaller increase in em-ployment from new investments and a largerreduction in employment from sales and liqui-dations of affiliates: New investments increasedaffiliate employment by ,—compared with, in —and sales and liquidations re-duced employment by ,—compared with, (table ). As in , the increase inaffiliate employment from expansions of exist-ing operations exceeded the reduction in affiliateemployment from cutbacks in operations.

U.S. exports of goods shipped by affiliateswere unchanged in , due to substantially re-duced exports by large wholesale trade affiliates—particularly by affiliates specializing in the tradeof agricultural commodities and by affiliates ofJapanese general trading companies. The re-duced exports by these Japanese-owned affiliatesreflected weakened demand associated with theappreciation of the dollar against the Japaneseyen (which made U.S. goods more expensivein Japan) and sluggish economic conditions inJapan. Foreign parents’ selloffs of affiliates were

Table 3.—Sources of Change in Nonban[Thousands of

Line 1990 1

1 Change in total affiliate employment ..................................... 223.0

Change in employment of large affiliates resulting from:2 New investments ................................................................ 481.63 Expansions of existing operations ..................................... 107.94 Sales or liquidations of businesses ................................... –354.15 Cutbacks in existing operations ........................................ –126.56 Combinations of new investments and sales or

liquidations of businesses ............................................. –16.9

7 Change not accounted for in lines 2–6 ................................. 131.1

NOTE.—Lines 2–6 cover only large affiliates—that is, affiliates with more than 500 employees—because a substantial number of small affiliates change their organizational structures, and in suchcases, it is particularly difficult to determine the reasons for the changes in their employment.

Line 2 equals the yearend employment of affiliates that were acquired or established duringthe year plus the change in employment of existing affiliates that had an increase in employmentand that had acquired another U.S. business during the year.

Line 3 equals the change in employment of affiliates that did not acquire another U.S. businessbut had an increase in employment.

Line 4 equals the employment at the end of the prior year of affiliates that were liquidatedor sold during the year plus the change in employment of affiliates that had a decline in employ-

a secondary factor that contributed to the reduc-tion in exports in wholesale trade. The affiliateshare of total U.S. exports of goods decreasedfrom percent in to percent in ; theshare accounted for by affiliate exports to theirforeign parent groups decreased from percentto percent.

U.S. imports of goods shipped to affiliates de-creased percent, following a -percent increasein . The decrease in was more than ac-counted for by a decrease in imports by wholesaletrade affiliates; imports by manufacturing affili-ates continued to increase. The affiliate share oftotal U.S. imports of goods decreased from percent to percent; the share accounted for byaffiliate imports from their foreign parent groupsdecreased from percent to percent.

Gross product

This section examines the relative magnitude ofaffiliate operations—measured by affiliate grossproduct—by industry of affiliate and by countryof ultimate beneficial owner (). The indus-try distribution of affiliate operations in ispresented both in terms of the new industry clas-sification system that is based on and interms of the old -based system. Comparisonswith the industry distributions of affiliate oper-ations in earlier years are made in terms of the-based system.

k U.S. Affiliate Employment, 1990–97 employees]

991 1992 1993 1994 1995 1996 1997

137.5 –156.5 50.2 74.9 101.2 163.2 59.3

291.1 101.7 261.9 280.0 301.2 373.2 307.9107.4 141.1 110.2 98.1 102.9 146.0 149.6

–152.2 –316.2 –239.9 –245.2 –241.5 –286.3 –313.8–136.4 –132.2 –95.1 –55.4 –69.9 –107.5 –97.8

–9.6 –18.0 6.3 –7.4 24.5 30.2 41.7

37.3 67.1 6.8 –4.9 –15.9 7.5 –28.3

ment and that sold a business or business segment during the year.Line 5 equals the change in employment of affiliates that did not sell a business or business

segment but had a decline in employment.Line 6 equals the change in employment of affiliates that both acquired and sold a business

or business segment during the year.Line 7 equals the change in employment of large affiliates not accounted for in lines 2–6 plus

all changes in employment for affiliates with 500 or fewer employees. It includes changes resultingfrom the addition to the survey universe of affiliates that were required to report in earlier yearsbut did not.

August •

Industry distribution in .—By -basedindustry, affiliates in manufacturing accountedfor about half of the gross product of all non-bank affiliates (table ). Within manufacturing,the gross product of affiliates was largest inchemicals, followed by petroleum and coal prod-ucts, machinery, and computers and electronicproducts.

Excluding manufacturing, the gross product ofaffiliates was largest in wholesale trade—whichincludes a number of large affiliates with substan-

Table 4.—Gross Product of All Nonbank U.S. Affiliaby NAICS-Based Indu

Millions

All nonbankaffiliates

All industries ................................................................... 384,883

Manufacturing ............................................................................... 188,477

Food ........................................................................................... 10,953Beverages and tobacco products ............................................. 5,907Paper ......................................................................................... 5,048Printing and related support activities ...................................... 2,803Petroleum and coal products .................................................... 23,421

Chemicals .................................................................................. 40,906Pharmaceuticals and medicines ........................................... 16,094Other ...................................................................................... 24,812

Plastics and rubber products .................................................... 7,991Nonmetallic mineral products .................................................... 12,044Primary metals ........................................................................... 8,600Fabricated metal products ........................................................ 7,910Machinery .................................................................................. 16,607

Computers and electronic products .......................................... 15,658Computers and peripheral equipment .................................. 1,022Communications equipment .................................................. 5,889Semiconductors and other electronic components .............. 4,512Navigational, measuring, and other instruments ................. 2,542Other ...................................................................................... 1,693

Electrical equipment, appliances, and components ................. 7,537Transportation equipment .......................................................... 13,554

Motor vehicles, bodies and trailers, and parts .................... 11,372Other ...................................................................................... 2,182

Other .......................................................................................... 9,538

Wholesale trade ........................................................................... 51,856Motor vehicles and motor vehicle parts and supplies ............. 11,879Other .......................................................................................... 39,977

Retail trade ................................................................................... 25,009Food and beverage stores ........................................................ 17,720Other .......................................................................................... 7,290

Information .................................................................................... 27,120Publishing industries .................................................................. 7,348Motion picture and sound recording industries ........................ 2,542Broadcasting and telecommunications ..................................... 16,153Information services and data processing services ................. 1,076

Finance (except depository institutions) and insurance ........ 26,331

Real estate and rental and leasing ........................................... 9,084

Professional, scientific, and technical services ...................... 5,981

Other industries ........................................................................... 51,025Agriculture, forestry, fishing, and hunting ................................. 730Mining ........................................................................................ 9,826Utilities ....................................................................................... 1,445Construction ............................................................................... 4,358Transportation and warehousing .............................................. 11,999Management of nonbank companies and enterprises 1 .......... –364Administration, support, and waste management .................... 8,993Health care and social assistance ............................................ 3,714Accommodation and food services ........................................... 8,577Miscellaneous services .............................................................. 1,746

D Suppressed to avoid disclosure of data of individual companies.n.m. Not meaningful.1. For U.S. affiliates, mainly consists of holding companies.

tial secondary operations in manufacturing—followed by information, finance (except deposi-tory institutions) and insurance, and retail trade.The affiliates in these four sectors to-gether accounted for about one-third of the grossproduct of all nonbank affiliates.

Information is one of the new sectors in that does not have an approximate counter-part in the . In , more than half ofthe gross product of affiliates in this sector wasaccounted for by affiliates in broadcasting and

tes and of Majority-Owned Nonbank U.S. Affiliatesstry of Affiliate, 1997

of dollars Percentage of all-industries total Addendum: Grossproduct of

majority-ownedaffiliates as a

percentage of thatof all nonbank

affiliates

Majority-ownedaffiliates

All nonbankaffiliates

Majority-ownedaffiliates

309,628 100.0 100.0 80.4

166,656 49.0 53.8 88.4

9,760 2.8 3.2 89.15,827 1.5 1.9 98.6

(D) 1.3 (D) (D)2,774 .7 .9 99.0

(D) 6.1 (D) (D)

37,789 10.6 12.2 92.415,818 4.2 5.1 98.321,971 6.4 7.1 88.5

7,224 2.1 2.3 90.411,577 3.1 3.7 96.15,252 2.2 1.7 61.16,148 2.1 2.0 77.7

15,451 4.3 5.0 93.0

14,700 4.1 4.7 93.91,185 .3 .4 115.95,765 1.5 1.9 97.94,290 1.2 1.4 95.1

(D) .7 (D) (D)(D) .4 (D) (D)

6,999 2.0 2.3 92.911,827 3.5 3.8 87.3

9,704 3.0 3.1 85.32,123 .6 .7 97.37,923 2.5 2.6 83.1

47,327 13.5 15.3 91.311,867 3.1 3.8 99.935,460 10.4 11.5 88.7

15,992 6.5 5.2 63.910,931 4.6 3.5 61.7

5,061 1.9 1.6 69.4

10,784 7.0 3.5 39.86,078 1.9 2.0 82.72,438 .7 .8 95.91,615 4.2 .5 10.01,103 .3 .4 102.5

21,879 6.8 7.1 83.1

7,006 2.4 2.3 77.1

5,289 1.6 1.7 88.4

34,694 13.3 11.2 68.0519 .2 .2 71.1

6,204 2.6 2.0 63.1472 .4 .2 32.7

3,697 1.1 1.2 84.85,733 3.1 1.9 47.8–263 –.1 –.1 n.m.

7,470 2.3 2.4 83.12,671 1.0 .9 71.96,582 2.2 2.1 76.71,610 .5 .5 92.2

NOTE.—Shares of more than 100 percent may result where the gross product of minority-ownedaffiliates is negative.

• August

telecommunications, an industry that is mainlyclassified in transportation and public utilities inthe . Most of the remaining gross product wasaccounted for by affiliates in publishing, an in-dustry that is mainly classified in manufacturingin the .

As in previous years, affiliates that were major-ity owned by foreign direct investors accountedfor about percent of the gross product ofall nonbank affiliates. In manufacturing andin wholesale trade, the majority-owned-affiliateshare was about percent. In contrast, in infor-mation, the share was only percent, reflectingrestrictions on foreign ownership in broadcastingand telecommunications.

Table 5.—Gross Product of Nonbank U.S. Affiliates by

1992

All industries .................................................................................. 266,333

Petroleum ..................................................................................................... 25,553Petroleum and coal products manufacturing ........................................... 18,967Other ......................................................................................................... 6,586

Manufacturing .............................................................................................. 134,127

Food and kindred products ...................................................................... 12,283Paper and allied products ........................................................................ 3,513Printing and publishing ............................................................................. 6,054

Chemicals and allied products ................................................................. 41,940Drugs .................................................................................................... 11,358Other ..................................................................................................... 30,582

Rubber and plastics products .................................................................. 5,459Stone, clay, and glass products .............................................................. 6,215Primary metal industries ........................................................................... 8,710Fabricated metal products ........................................................................ 6,310

Industrial machinery and equipment ........................................................ 10,160Computer and office equipment .......................................................... 2,209Other ..................................................................................................... 7,951

Electronic and other electric equipment .................................................. 15,694Transportation equipment ......................................................................... 4,840

Motor vehicles and equipment ............................................................ 2,659Other ..................................................................................................... 2,180

Instruments and related products ............................................................ 6,100Other ......................................................................................................... 6,849

Wholesale trade .......................................................................................... 31,000Motor vehicles and equipment ................................................................. 7,866Other ......................................................................................................... 23,134

Retail trade .................................................................................................. 19,896Food stores ............................................................................................... 11,491Other ......................................................................................................... 8,405

Finance, except depository institutions .................................................. 3,222

Insurance ..................................................................................................... 5,666

Real estate ................................................................................................... 6,390

Services ........................................................................................................ 20,260Hotels and other lodging places .............................................................. 3,383Business services ..................................................................................... 8,953Motion pictures ......................................................................................... 1,995Health services ......................................................................................... 793Other ......................................................................................................... 5,135

Other industries .......................................................................................... 20,219Agriculture, forestry, and fishing .............................................................. 659Mining ....................................................................................................... 5,527Construction .............................................................................................. 3,230Transportation ........................................................................................... 7,609Communication and public utilities .......................................................... 3,195

Under the old -based system, affiliates inmanufacturing accounted for percent of thegross product of nonbank affiliates in , a sharesomewhat lower than that under the new -based system (table ). The difference in theseshares is largely the net result of differences inthe treatment of petroleum and coal productsmanufacturing (which is classified in manufac-turing under the new -based system but inthe special industry group “petroleum” under theold system) and publishing (which is classified ininformation under but in manufacturingunder the ).

Within manufacturing, the gross product ofaffiliates in the -based industry “motor vehi-cles and equipment” was substantially less than

SIC-Based Industry of Affiliate, 1992, 1996, and 1997

Millions of dollars Percentage of all-industries total Addendum:Percent

change inaffiliategross

product,1996–97

1996 1997 1992 1996 1997

358,085 384,883 100.0 100.0 100.0 7.5

33,007 35,220 9.6 9.2 9.2 6.723,099 23,449 7.1 6.5 6.1 1.5

9,908 11,772 2.5 2.8 3.1 18.8

166,558 172,409 50.4 46.5 44.8 3.5

12,579 14,166 4.6 3.5 3.7 12.65,893 5,106 1.3 1.6 1.3 –13.49,260 9,753 2.3 2.6 2.5 5.3

43,771 41,197 15.7 12.2 10.7 –5.916,051 16,110 4.3 4.5 4.2 .427,720 25,087 11.5 7.7 6.5 –9.5

7,733 8,123 2.0 2.2 2.1 5.09,822 12,067 2.3 2.7 3.1 22.99,204 9,255 3.3 2.6 2.4 .69,098 8,496 2.4 2.5 2.2 –6.6

14,578 16,915 3.8 4.1 4.4 16.01,178 960 .8 .3 .2 –18.5

13,400 15,955 3.0 3.7 4.1 19.119,934 21,318 5.9 5.6 5.5 6.99,374 11,273 1.8 2.6 2.9 20.37,058 9,054 1.0 2.0 2.4 28.32,316 2,219 .8 .6 .6 –4.26,536 6,483 2.3 1.8 1.7 –.86,849 8,776 2.6 1.9 2.3 28.1

41,714 45,776 11.6 11.6 11.9 9.79,697 11,841 3.0 2.7 3.1 22.1

32,017 33,935 8.7 8.9 8.8 6.0

24,770 28,313 7.5 6.9 7.4 14.314,661 17,776 4.3 4.1 4.6 21.210,109 10,537 3.2 2.8 2.7 4.2

6,277 9,669 1.2 1.8 2.5 54.0

11,414 16,629 2.1 3.2 4.3 45.7

6,101 7,318 2.4 1.7 1.9 19.9

26,230 29,278 7.6 7.3 7.6 11.64,928 4,962 1.3 1.4 1.3 .7

10,882 14,123 3.4 3.0 3.7 29.81,715 1,671 .7 .5 .4 –2.62,802 3,716 .3 .8 1.0 32.65,903 4,806 1.9 1.6 1.2 –18.6

42,014 40,270 7.6 11.7 10.5 –4.2779 732 .2 .2 .2 –6.0

5,475 5,952 2.1 1.5 1.5 8.73,552 3,955 1.2 1.0 1.0 11.3

13,524 11,499 2.9 3.8 3.0 –15.018,685 18,132 1.2 5.2 4.7 –3.0

August •

that of affiliates in the -based industry “mo-tor vehicles, bodies and trailers, and parts.” Thelarger gross product in the -based indus-try is mainly due to the inclusion of severalparts-producing affiliates that are classified inother manufacturing industries—most notablyin fabricated metal products, machinery, andelectronics—in the -based system.

In wholesale trade and in mining, the grossproduct of affiliates under the -based sys-

Acknowledgments

The benchmark survey was conducted underthe supervision of Joseph F. Cherry , with contribu-tions by Juris E. Abolins, Chester C. Braham, Emily D.Curry, Hien X. Dang, Constance T. Deve, Nicole Don-negan, Chris Goins, David N. Hale, Earl F. Holmes,Lonnie Hunter, Carol L. Lefkowitz, Stephanie A. Lewis,Edna A. Ludden, Betty K. Maddy, Isabel L. McConnell,Demetria A. McCormick, Gregory L. McCormick, Sid-ney A. Moskowitz, Christine L. Perrone, Ronald L.Ross, William R. Shupe, Clarence D. Smith, MarieP. Smith, John R. Starnes, Diann L. Vann, KimyettaWhitehead, and Dorrett E. Williams.

The estimates of U.S.-affiliate gross product were pre-pared by Jeffrey H. Lowe and Dale P. Shannon. Theestimates of the rate of return on assets of nonfinancialaffiliates and of all U.S. nonfinancial corporations wereprepared by Raymond J. Mataloni, Jr.

Computer programming for data estimation andthe generation of data tables was provided by ArnoldGilbert, Diane Young, and Neeta Kapoor.

.

Using Employment Data to Estimate A

. Establishment-level data from a joint project of and the Bu-reau of the Census can be used to calculate affiliate shares at an evengreater level of detail. These data show each four-digit manufacturingindustry in the Standard Industrial Classification; they are currently avail-able for –. The data for are analyzed in Ned G. Howenstineand William J. Zeile, “Characteristics of Foreign-Owned U.S. Manufac-turing Establishments,” S (January ): –. The data for are analyzed in Ned G. Howenstine and Dale P. Shannon, “Differ-ences in Foreign-Owned U.S. Manufacturing Establishments by Countryof Owner,” S (March ): –.

tem was substantially less than that of affiliatesin the corresponding -based sectors. Thedifference reflected the separate classification ofpetroleum affiliates under the -based systemand their inclusion in wholesale trade or oil andgas extraction under the -based system.

In retail trade, the gross product of affiliateswas larger on an basis than on a basisdue to the inclusion of restaurants, which under

ffiliate Shares of the U.S. Economy

Data Availability

This article presents summary data from the benchmark survey. A publication presenting moredetailed data from the survey will be available earlythis fall from the U.S. Government Printing Office;its availability will be announced on the inside backcover of the S. Both this article and the pub-lication present preliminary results of the benchmarksurvey. The final results of the benchmark survey willbe published next year.

Estimates of U.S. affiliate operations in –are available on diskettes and in compressed filesthat can be downloaded from ’s Web site at<www.bea.doc.gov>. The estimates for – are alsoavailable in publications.

For more information on these products andhow to get them, see the International Invest-ment Division Product Guide on ’s Web siteat <www.bea.doc.gov/bea/ai/-.htm>, or write toResearch Branch (–), International Investment Di-vision, Bureau of Economic Analysis, U.S. Departmentof Commerce, Washington, .

In this article, data on employment are used to es-timate affiliate shares of the U.S. economy by industrybecause these data can be disaggregated by industry ofsales, a basis that approximates the disaggregation of thedata for all U.S. businesses by industry of establishment.Thus, the data on affiliate employment can be used tocalculate the affiliate shares of the U.S. economy at agreater level of industry detail than can be calculated us-ing the gross product estimates or other data, which canonly be disaggregated on the basis of industry of affili-ate.

In the classification by industry of sales, the data on af-filiate employment (and sales) are distributed among all

of the industries in which the affiliate reports sales.As a result, employment classified by industry of salesshould approximate that classified by industry of es-tablishment (or plant), because an affiliate that has anestablishment in an industry usually also has sales in thatindustry.

In contrast, in the classification by industry of affili-ate, all of the operations data (including the employmentdata) for an affiliate are assigned to that affiliate’s “pri-mary” industry—that is, the industry in which it hasthe most sales.

As a result, any affiliate operations that

take place in secondary industries will be classified asoperations in the primary industry.

.

. However, this is not the case if one establishment of an affili-ate provides all of its output to another establishment of that affiliate.For example, if an affiliate operates both a metal mine and a metal-manufacturing plant and if the entire output of the mine is used by themanufacturing plant, all of the affiliate’s sales will be in metal manu-facturing, and none in metal mining. When the mining employees aredistributed by industry of sales, they are classified in manufacturing eventhough the industry of that establishment is mining.

. An affiliate’s primary industry is based on a breakdown of theaffiliate’s sales by International Surveys Industry classification code.

• August

, are classified in accommodation and foodservices. The effect of this difference in classifi-cation was partly offset by the difference in thetreatment of affiliates that specialize in retailinggasoline, which are included in retail trade un-der the -based system but are classified inpetroleum under the -based system.

Change in industry distribution.—On the ba-sis, the share of nonbank-affiliate gross productaccounted for by manufacturing declined from percent in to percent in (table ).The decline partly reflects the selloff of foreignownership shares in some large U.S. manufac-turing companies, particularly in chemicals. Italso reflects recent expansions in foreign direct

Table 6.—Gross Product of Nonbank U.S. Affiliates

Millions of dollars

1992 1993 1994 1995

All countries ...................................... 266,333 285,738 312,981 322,631

Canada ............................................................ 33,479 41,062 41,613 35,277

Europe ............................................................. 161,226 168,296 188,372 201,965

Belgium ........................................................ 3,725 3,711 4,161 4,290Denmark ...................................................... 1,143 1,689 1,915 1,849Finland ......................................................... 1,262 1,435 1,450 1,645France .......................................................... 18,899 19,274 23,163 23,895

Germany ...................................................... 28,716 32,055 35,043 37,047Ireland .......................................................... 1,852 1,655 1,937 2,607Italy .............................................................. 2,318 2,541 2,992 3,056Luxembourg ................................................. 697 814 968 845Netherlands ................................................. 19,657 20,765 24,927 27,697

Norway ......................................................... 563 709 1,043 1,074Sweden ........................................................ 7,053 5,944 5,255 5,484Switzerland .................................................. 17,117 16,847 17,113 18,563United Kingdom ........................................... 57,412 59,864 67,288 72,478Other ............................................................ 812 992 1,117 1,433

Latin America and Other WesternHemisphere ................................................ 8,739 10,126 12,045 12,367

Mexico ......................................................... 1,109 1,400 1,642 1,754Panama ....................................................... 1,638 1,460 1,275 (D)Venezuela .................................................... 3,124 3,757 4,729 4,712

Bermuda ...................................................... 1,153 1,274 2,022 2,398Netherlands Antilles .................................... 1,071 1,233 1,208 1,182Other ............................................................ 645 1,002 1,169 (D)

Africa ............................................................... 1,267 1,387 1,571 2,352South Africa ................................................. 877 897 1,012 1,867Other ............................................................ 390 489 560 484

Middle East ..................................................... 3,460 4,556 5,802 4,792Kuwait .......................................................... 953 1,062 1,057 776Saudi Arabia ................................................ 2,117 2,923 3,204 3,033Other ............................................................ 390 571 1,541 983

Asia and Pacific ............................................. 54,318 56,342 58,769 61,080

Australia ....................................................... 8,101 7,732 4,680 4,615Hong Kong .................................................. 1,056 1,395 1,312 1,335Japan ........................................................... 42,659 44,539 48,810 50,513

Korea, Republic of ...................................... 549 693 657 1,120Singapore .................................................... 129 112 232 170Taiwan ......................................................... 560 744 1,359 1,808Other ............................................................ 1,263 1,127 1,719 1,520

United States .................................................. 3,843 3,969 4,810 4,798

* Less than 0.05 percent.D Suppressed to avoid disclosure of data of individual companies.

investment activity in other industries, such as fi-nance, except depository institutions; insurance;and communication and public utilities.

The shares of affiliate gross product accountedfor by affiliates in the finance and insuranceindustries increased substantially from to, partly as a result of large increases in grossproduct in . The gross product of affiliatesin finance increased more than percent andthose in insurance, more than percent; theseincreases reflected both acquisitions of new affili-ates and expansions in the operations of existingaffiliates.

Within manufacturing, the gross product of af-filiates in stone, clay, and glass products and in

by Country of Ultimate Beneficial Owner, 1992–97

Percentage of all-countries total Adden-dum:

Percentchange in

affiliategross

product,1996–97

1996 1997 1992 1993 1994 1995 1996 1997

358,085 384,883 100.0 100.0 100.0 100.0 100.0 100.0 7.5

32,550 34,464 12.6 14.4 13.3 10.9 9.1 9.0 5.9

229,286 245,919 60.5 58.9 60.2 62.6 64.0 63.9 7.3

4,661 5,598 1.4 1.3 1.3 1.3 1.3 1.5 20.12,079 1,194 .4 .6 .6 .6 .6 .3 –42.61,688 1,917 .5 .5 .5 .5 .5 .5 13.6

34,227 35,863 7.1 6.7 7.4 7.4 9.6 9.3 4.8

42,929 46,171 10.8 11.2 11.2 11.5 12.0 12.0 7.62,527 2,544 .7 .6 .6 .8 .7 .7 .73,106 3,167 .9 .9 1.0 .9 .9 .8 2.01,582 617 .3 .3 .3 .3 .4 .2 –61.0

30,078 33,750 7.4 7.3 8.0 8.6 8.4 8.8 12.2

1,452 1,858 .2 .2 .3 .3 .4 .5 28.06,409 7,896 2.6 2.1 1.7 1.7 1.8 2.1 23.2

20,677 25,637 6.4 5.9 5.5 5.8 5.8 6.7 24.076,602 78,550 21.6 21.0 21.5 22.5 21.4 20.4 2.51,269 1,157 .3 .3 .4 .4 .4 .3 –8.8

12,955 13,545 3.3 3.5 3.8 3.8 3.6 3.5 4.6

1,862 1,347 .4 .5 .5 .5 .5 .3 –27.7826 696 .6 .5 .4 (D) .2 .2 –15.7

5,089 5,247 1.2 1.3 1.5 1.5 1.4 1.4 3.1

2,403 3,295 .4 .4 .6 .7 .7 .9 37.11,319 (D) .4 .4 .4 .4 .4 (D) (D)1,456 (D) .2 .4 .4 (D) .4 (D) (D)

2,555 2,843 .5 .5 .5 .7 .7 .7 11.32,011 2,208 .3 .3 .3 .6 .6 .6 9.8

544 635 .1 .2 .2 .2 .2 .2 16.7

6,387 7,295 1.3 1.6 1.9 1.5 1.8 1.9 14.2756 868 .4 .4 .3 .2 .2 .2 14.8

3,545 4,263 .8 1.0 1.0 .9 1.0 1.1 20.32,086 2,164 .1 .2 .5 .3 .6 .6 3.7

69,190 73,667 20.4 19.7 18.8 18.9 19.3 19.1 6.5

5,758 5,207 3.0 2.7 1.5 1.4 1.6 1.4 –9.61,559 1,474 .4 .5 .4 .4 .4 .4 –5.5

58,069 62,345 16.0 15.6 15.6 15.7 16.2 16.2 7.4

644 655 .2 .2 .2 .3 .2 .2 1.7261 696 (*) (*) .1 .1 .1 .2 166.7

1,639 1,717 .2 .3 .4 .6 .5 .4 4.81,260 1,573 .5 .4 .5 .5 .4 .4 24.8

5,161 7,151 1.4 1.4 1.5 1.5 1.4 1.9 38.6

August •

transportation equipment increased more than percent in . The increase in stone,clay, and glass products was mainly due tonew investment transactions and to intracom-pany reorganizations in which operations weretransferred to these affiliates from affiliates inother industries. The increase in transportationequipment was mainly due to expanded produc-tion by existing affiliates in motor vehicles andequipment.

By country.—In , as in , more than percent of the gross product of all nonbank af-filiates was accounted for by affiliates with ’sin seven major investing countries: Canada,France, Germany, the Netherlands, Switzerland,the United Kingdom, and Japan (table ). In

Table 7.—Gross Product of Majority-Owned Nonbank U.1992, 1996,

Millions of dollars

1992 1996 1

All countries ..................................................... 214,781 283,422 3

Canada ........................................................................... 22,115 27,687

Europe ............................................................................ 141,505 180,729 1

Belgium ....................................................................... 3,564 4,587Denmark ..................................................................... (D) 2,082Finland ........................................................................ 1,162 1,536France ......................................................................... 16,611 23,166

Germany ..................................................................... 24,203 34,224Ireland ......................................................................... (D) 1,153Italy ............................................................................. 2,032 2,973Luxembourg ................................................................ 467 421Netherlands ................................................................. 17,797 25,060

Norway ........................................................................ 421 1,250Sweden ....................................................................... 4,356 4,736Switzerland ................................................................. 15,824 17,764United Kingdom .......................................................... 52,777 60,898Other ........................................................................... (D) 879

Latin America and Other Western Hemisphere ........ 7,020 10,841

Mexico ......................................................................... 848 1,380Panama ....................................................................... 1,610 (D)Venezuela ................................................................... (D) (D)

Bermuda ..................................................................... 1,009 2,348Netherlands Antilles .................................................... 799 1,281Other ........................................................................... (D) 1,412

Africa .............................................................................. (D) 1,048South Africa ................................................................ (D) 1,037Other ........................................................................... (D) 12

Middle East .................................................................... (D) 2,058Kuwait ......................................................................... 510 310Saudi Arabia ............................................................... (D) 491Other ........................................................................... (D) 1,257

Asia and Pacific ............................................................ 40,240 59,496

Australia ...................................................................... 3,558 4,696Hong Kong .................................................................. 946 1,053Japan .......................................................................... 33,729 50,412

Korea, Republic of ..................................................... 431 462Singapore .................................................................... 124 239Taiwan ........................................................................ 526 1,554Other ........................................................................... 926 1,080

United States ................................................................. (D) 1,563

* Less than 0.05 percent.D Suppressed to avoid disclosure of data of individual companies.n.m. Not meaningful.

both years, the largest investing country was theUnited Kingdom, followed by Japan. In ,Germany was the third-largest investing country.In , Canada was the third-largest investingcountry, but by , its ranking had slipped tothe fifth largest, partly as a result of Canadian dis-investment in several large minority-owned U.S.companies; the share of Canadian-owned affil-iates’ gross product accounted for by majority-owned affiliates increased from percent in to percent in (table ).

Among the seven major investing countries, thegross product of Swiss-owned affiliates increased percent in , partly as a result of new in-vestments. The gross product of affiliates with’s in the Netherlands increased percent,

S. Affiliates by Country of Ultimate Beneficial Owner,and 1997

Percentage of all-industries total Addenda: Gross product of majority-owned affiliates as a percentage of

that of all nonbank affiliates997 1992 1996 1997

1992 1996 1997

09,628 100.0 100.0 100.0 80.6 79.1 80.4

29,476 10.3 9.8 9.5 66.1 85.1 85.5

97,413 65.9 63.8 63.8 87.8 78.8 80.3

(D) 1.7 1.6 (D) 95.7 98.4 (D)1,183 (D) .7 .4 (D) 100.1 99.11,666 .5 .5 .5 92.1 91.0 86.9

23,886 7.7 8.2 7.7 87.9 67.7 66.6

36,851 11.3 12.1 11.9 84.3 79.7 79.8(D) (D) .4 (D) (D) 45.6 (D)

3,187 .9 1.0 1.0 87.7 95.7 100.6411 .2 .1 .1 67.0 26.6 66.6

27,446 8.3 8.8 8.9 90.5 83.3 81.3

(D) .2 .4 (D) 74.8 86.1 (D)6,176 2.0 1.7 2.0 61.8 73.9 78.2

21,719 7.4 6.3 7.0 92.4 85.9 84.766,313 24.6 21.5 21.4 91.9 79.5 84.4

995 (D) .3 .3 (D) 69.3 86.0

11,873 3.3 3.8 3.8 80.3 83.7 87.7

1,153 .4 .5 .4 76.5 74.1 85.6(D) .7 (D) (D) 98.3 (D) (D)(D) (D) (D) (D) (D) (D) (D)

3,203 .5 .8 1.0 87.5 97.7 97.2(D) .4 .5 (D) 74.6 97.1 (D)

1,137 (D) .5 .4 (D) 97.0 (D)

(D) (D) .4 (D) (D) 41.0 (D)(D) (D) .4 (D) (D) 51.6 (D)(D) (D) (*) (D) (D) 2.2 (D)

2,426 (D) .7 .8 (D) 32.2 33.3(D) .2 .1 (D) 53.5 41.0 (D)

626 (D) .2 .2 (D) 13.9 14.7(D) (D) .4 (D) (D) 60.3 (D)

63,879 18.7 21.0 20.6 74.1 86.0 86.7

4,397 1.7 1.7 1.4 43.9 81.6 84.41,139 .4 .4 .4 89.5 67.5 77.3

54,312 15.7 17.8 17.5 79.1 86.8 87.1

432 .2 .2 .1 78.5 71.7 66.0716 .1 .1 .2 96.1 91.6 102.9

1,615 .2 .5 .5 93.9 94.8 94.11,268 .4 .4 .4 73.3 85.7 80.6

(D) (D) .6 (D) (D) 30.3 (D)

NOTE.—Shares of more than 100 percent may result where the gross product of minority-ownedaffiliates is negative.

• August

All industries 2 .........

Agriculture, forestry, fishing, anMining, excluding oil and gas eUtilities ....................................Construction ............................

Manufacturing .........................Food ...................................Beverages and tobacco .....Textile mills ........................Textile product mills ...........Apparel ...............................Leather and allied productsWood products ...................Paper ..................................Printing and related support Petroleum and coal productsChemicals ...........................Plastics and rubber productsNonmetallic mineral productsPrimary metals ...................Fabricated metal products .Machinery ...........................Computer and electronic proElectrical equipment, applianTransportation equipment ..Furniture and related producMiscellaneous manufacturing

n.a. Data required to compute sh1. The data on U.S. employment

fied by industry of establishment. FAccounts (NIPA) Tables’’ (see the and subsectors, they are from the Call industries in the agriculture andsome sectors have not yet been rel

For ‘‘all industries,’’ the total for industries less the employment of dment totals used to calculate the totals used to calculate affiliate sharThe estimates used for table 10, utions. In addition, the estimates useemployed abroad by U.S. businesstable because of different definitions

reflecting increases in the value added of existingaffiliates.

Share of U.S. employment

In , U.S. affiliates of foreign companiesaccounted for . percent of total U.S. private-industry employment, down slightly from a .-percent share in (table ). The decrease inthe affiliate share partly reflects the concentrationof affiliate activity in manufacturing, an indus-try whose share of total U.S. employment hasdeclined.

By industry.—Among the sectors, the affil-iate share of employment in was largest inmining (. percent), followed by manufactur-ing (. percent) and information (. percent)(table ). Within manufacturing, the affiliate

. Manufacturing’s share of U.S. private-industry employment (excludingdepository institutions and private households) decreased from . percentin to . percent in .

. Employment data by industry of sales are used to estimate shares; thisbasis approximates the establishment-based disaggregation of the correspond-

Table 8.—Employment by Nonbank U.S. Affiliates by NAIC

Thousandsof

employees

Employmentas a

percentageof

total U.S.employmentin nonbank

privateindustries 1

..................................................................... 5,164.3 4.9

d hunting ................................................... 25.7 n.a.xtraction .................................................... 64.4 15.0

..................................................................... 8.0 1.1

..................................................................... 74.0 1.3

..................................................................... 2,106.5 12.3

..................................................................... 139.0 9.3

..................................................................... 31.2 17.6

..................................................................... 33.0 8.2

..................................................................... 14.0 6.3

..................................................................... 35.3 4.7.................................................................... 2.3 2.6

..................................................................... 11.6 2.0

..................................................................... 57.5 10.0activities .................................................... 60.0 7.13 ............................................................... 38.3 16.9

..................................................................... 307.4 34.0.................................................................. 143.9 14.0................................................................. 107.9 21.2

..................................................................... 92.5 15.2

..................................................................... 119.4 6.7

..................................................................... 207.9 14.5ducts ......................................................... 261.4 15.5ce, and components ................................ 120.3 20.2

..................................................................... 225.2 11.9ts ............................................................... 16.9 2.8.................................................................. 81.4 11.1

Wholesale tradRetail trade ....Transportation

Information .....Publishing inMotion picturBroadcastingInformation s

Finance (excepFinance, excInsurance ca

Real estate andProfessional, scManagement oAdministration, Educational serHealth care anArts, entertainmAccommodationOther services

Auxiliaries, exc

Unspecified 4 ..

ares are not available. in private industries that were used in calculating these percentages are classi-or ‘‘all industries,’’ they are from table 6.4C of the ‘‘National Income and ProductAugust 1998 issue of the SURVEY OF CURRENT BUSINESS); for NAICS sectorsensus Bureau’s 1997 Economic Census. The Economic Census does not cover transportation sectors. In addition, data from the 1997 Economic Census for

eased.U.S. employment in nonbank private industries is equal to employment in privateepository institutions and private households. The U.S. private-industry employ-

affiliate shares in ‘‘all industries’’ in this table differ from the U.S. employmentes in table 10; the latter are from BEA’s Regional Economic Information System.nlike those used for this table, do not exclude employment in depository institu-d for table 10, unlike those used for this table, exclude U.S. residents temporarilyes. They may also differ from NIPA estimates used for ‘‘all industries’’ in this and revision schedules.

2. For consistement in Puerto Rwhen the percenta

3. For both U.S4. This line inc

filled out their 19or net income or that filed the shor

NOTE.—A signigrated petroleum ees in petroleum and coal productswithout refining’’ ileum and coal pro

shares were largest in chemicals (. percent),nonmetallic minerals (. percent), and electri-cal equipment, appliances, and components (.percent). Affiliates accounted for more than percent of employment in of the subsectorsin manufacturing.

Similar patterns in affiliate shares of employ-ment were evident in the data by divisionin . The affiliate share was largest in min-ing, followed by manufacturing (table ). Withinmanufacturing, the affiliate shares were largestin chemicals; tobacco products; stone, clay, andglass products; and electronic and other electricequipment.

In communications, the affiliate share of em-ployment increased from less than percent in to more than percent in , mainly asa result of foreign acquisitions of U.S. compa-nies. Within manufacturing, the affiliate shareof employment in motor vehicles and equipment

S-Based Industry of Sales, 1997

Thousandsof

employees

Employmentas a

percentageof

total U.S.employmentin nonbank

privateindustries 1

e ........................................................................................... 390.4 6.7.............................................................................................. 725.8 5.1and warehousing ................................................................. 187.6 n.a.

.............................................................................................. 250.3 7.8dustries ............................................................................... 66.9 6.9e and sound recording industries ...................................... 25.5 8.8 and telecommunications ................................................... 128.8 8.3ervices and data processing services ............................... 29.1 7.1

t depository institutions) and insurance ............................. 217.0 n.a.ept depository institutions .................................................. 74.1 n.a.rriers and related activities ................................................ 142.9 6.2

rental and leasing ............................................................ 58.3 3.3ientific, and technical services .......................................... 135.6 2.5

f nonbank companies and enterprises ............................... 3.3 n.a.support, waste management, and remediation services 272.1 3.7vices .................................................................................... 6.5 2.0d social assistance .............................................................. 99.9 .7ent, and recreation ............................................................ 38.5 2.4 and food services ............................................................. 287.0 n.a.(except public administration and private households) ..... 51.1 1.5

ept management of companies and enterprises ............... 118.6 n.a.

.............................................................................................. 43.5 ....................

ncy with the coverage of the data on U.S. employment in private industries, U.S.-affiliate employ-ico, in ‘‘other U.S. areas,’’ and in ‘‘foreign’’ was excluded from the U.S.-affiliate employment totalge shares on this line were computed.. affiliates and all U.S. businesses, includes oil and gas extraction. (See note below.)ludes all employment that U.S. affiliates did not specify in terms of industry of sales when they

97 benchmark survey form. Affiliates that filed the long form (that is, affiliates with assets, sales,loss greater than $100 million) had to specify only their ten largest sales categories, and affiliatest form had to specify only their three largest sales categories.ficant portion of U.S. affiliate employment in petroleum and coal products is accounted for by inte-companies that have, in addition to their manufacturing employees, substantial numbers of employ-extraction; because these employees cannot be identified separately, they are included in petroleum manufacturing. For consistency, employees of affiliates classified in the ‘‘oil and gas extraction

ndustry and employees of all U.S. businesses in oil and gas extraction are also included in petro-ducts manufacturing rather than in mining.

ing data for all U.S. businesses. See the box “Using Employment Data toEstimate Affiliate Shares of the U.S. Economy” on page .

August •

. Data on affiliate employment in manufacturing by State were collectedin the benchmark survey for manufacturing on a basis. However,the affiliate shares of State manufacturing employment cannot be computedfor , because the industry-level data on all-U.S.-business employment byState are currently available only for industries on an basis.

increased substantially, from . in to .percent in , largely as a result of expansionsof operations by existing affiliates.

By State.—In , the affiliate shares of private-industry employment were highest in Hawaii(. percent), South Carolina (. percent), andNorth Carolina (. percent) (table ). Hawaiialso had the highest share in each year in –. In –, Delaware had the second-highestshare, but the share dropped sharply in as aresult of foreign disinvestments. South Carolina

Table 9.—Employment by Nonbank U.S. Affiliates

Thousands of

1992

All industries 2 .................................................. 4,715.4Agriculture, forestry, and fishing .................................... 31.9Mining, excluding oil and gas extraction ....................... 68.1Construction .................................................................... 68.0Manufacturing 3 ............................................................... 2,139.7

Food and kindred products ........................................ 197.7Tobacco products ....................................................... ITextile mill products ................................................... 45.3Apparel and other textile products ............................ 32.4Lumber and wood products ....................................... 14.2Furniture and fixtures ................................................. 16.4Paper and allied products .......................................... 51.9Printing and publishing ............................................... 101.0Chemicals and allied products ................................... 347.7Petroleum and coal products 4 .................................. 88.6Rubber and miscellaneous plastics products ............ 130.0Leather and leather products ..................................... 8.4Stone, clay, and glass products ................................ 107.2Primary metal industries ............................................. 110.4Fabricated metal products .......................................... 110.1Industrial machinery and equipment .......................... 217.3Electronic and other electric equipment .................... 263.2Transportation equipment ........................................... 139.8

Motor vehicles and equipment .............................. 89.8Other transportation equipment ............................. 50.0

Instruments and related products .............................. 110.6Miscellaneous manufacturing industries .................... K

Transportation and public utilities .................................. 229.8Transportation ............................................................. 197.0Communications ......................................................... 17.2Electric, gas, and sanitary services ........................... 15.6

Wholesale trade .............................................................. 345.8Retail trade ...................................................................... 798.5Finance, except depository institutions .......................... 69.8Insurance ......................................................................... 142.6Real estate ...................................................................... 32.0Services 5 ........................................................................ 701.5

Hotels and other lodging places ................................ 161.1Business services ....................................................... 299.2Motion pictures ........................................................... 24.3Other ........................................................................... 216.9

Unspecified 6 ................................................................... 87.9

n.a. Not applicable.1. The data on U.S. employment in private industries that were used in calculating these per-

centages are classified by industry of establishment. They are from table 6.4C of the ‘‘NationalIncome and Product Accounts (NIPA) Tables’’ (see the August 1998 issue of the SURVEY OF CUR-RENT BUSINESS). The total for U.S. employment in nonbank private industries is equal to employ-ment in private industries less the employment of depository institutions and private households.The U.S. private-industry employment totals used to calculate the affiliate shares in ‘‘all industries’’in this table differ from the U.S. employment totals used to calculate affiliate shares in tables10 and 11; the data used for tables 10 and 11 are from BEA’s Regional Economic InformationSystem. The estimates used for table 10, unlike those used for this table, do not exclude employ-ment in depository institutions. The estimates used for tables 10 and 11, unlike those used forthis table, exclude U.S. residents temporarily employed abroad by U.S. businesses. They mayalso differ from NIPA estimates used for this table because of different definitions and revisionschedules.

2. For consistency with the coverage of the data on U.S. employment in private industries,U.S.-affiliate employment in Puerto Rico, in ‘‘other U.S. areas,’’ and in the ‘‘foreign’’ category wasexcluded from the U.S.-affiliate employment total when the percentage shares on this line werecomputed.

3. Total affiliate manufacturing employment and the shares of all-U.S.-business manufacturingemployment accounted for by affiliates shown in this table differ from those shown in table 11.In this table, employment is classified by industry of sales, and the total for manufacturing includessome nonmanufacturing employees (see the box ‘‘Using Employment Data to Estimate AffiliateShares of the U.S. Economy’’), whereas in table 11, affiliate manufacturing employment consistsonly of employees on the payroll of manufacturing plants. Data on the latter basis are not avail-able for the subindustries within manufacturing shown in this table. In addition, the total for manu-

had the third-highest share in – and thesecond highest in –.

In , affiliates in Kentucky (. percent)had the highest share of manufacturing employ-ment, followed by South Carolina (. percent)(table ). In , Delaware had the highestshare, followed by West Virginia.

by SIC-Based Industry of Sales, 1992 and 1996

employees Employment as a percentage of total U.S. employmentin nonbank private industries 1

1996 1992 1996

5,105.0 5.1 5.028.6 1.7 1.463.1 24.0 24.172.2 1.4 1.3

2,210.9 11.5 11.7168.0 11.9 9.9

9.5 (D) 23.245.9 6.7 7.338.9 3.2 4.512.4 2.0 1.514.6 3.4 2.959.9 7.5 8.8

114.9 6.6 7.3322.3 32.1 31.254.5 17.4 11.8

150.7 14.8 15.43.1 6.9 3.1

117.8 20.9 21.6102.1 15.9 14.4135.9 8.3 9.4236.9 11.3 11.2307.8 17.2 18.6175.0 7.6 9.8140.8 11.0 14.6

34.2 4.9 4.2113.3 11.9 13.327.4 (D) 6.8

365.7 4.0 5.8235.4 5.6 5.8114.3 1.4 8.5

16.0 1.6 1.8388.2 5.6 5.9922.5 4.0 4.1

69.7 6.3 5.2136.9 6.5 6.128.2 2.4 2.0

766.5 2.3 2.2119.3 9.7 6.6342.5 5.5 4.6

23.5 5.9 4.4281.2 1.0 1.152.4 n.a. n.a.

facturing in this table includes oil and gas extraction, which is excluded from the manufacturingtotal in table 11.

4. For both U.S. affiliates and all U.S. businesses, includes oil and gas extraction. (See notebelow.)

5. Excludes private households.6. This line includes all employment that U.S. affiliates did not specify in terms of industry

of sales when they filled out their survey forms for 1992 and 1996. Affiliates that filed the longform (that is, affiliates with assets, sales, or net income or loss greater than $50 million) hadto specify only their eight largest sales categories, and affiliates that filed the short form had tospecify only their three largest sales categories.

NOTES.—In this table, petroleum is not shown as a separate major industry. Instead, in orderto be consistent with the all-U.S. data on employment by industry, affiliate employment in thevarious petroleum subindustries is distributed among the other major industries. Thus, manufactur-ing includes petroleum and coal products, wholesale trade includes petroleum wholesale trade,retail trade includes gasoline service stations, and transportation includes petroleum tanker oper-ations, pipelines, and storage. A significant portion of U.S. affiliate employment in petroleum andcoal products is accounted for by integrated petroleum companies that have, in addition to theirmanufacturing employees, substantial numbers of employees in petroleum extraction; becausethese employees cannot be identified separately, they are included in petroleum and coal productsmanufacturing. For consistency, employees of affiliates classified in the ‘‘oil and gas extractionwithout refining’’ industry and employees of all U.S. businesses in oil and gas extraction are alsoincluded in petroleum and coal products manufacturing rather than in mining.

Size ranges are given in employment cells that are suppressed. The size ranges are A—1to 499; F—500 to 999; G—1,000 to 2,499; H—2,500 to 4,999; I—5,000 to 9,999; J—10,000 to24,999; K—25,000 to 49,999; L—50,000 to 99,999; M—100,000 or more.

• August

Table 10.—Employment by Nonbank U.S. Affiliates by State, 1992–97

Thousands of employees Employment as a percentage of total private industryemployment in the State 1

1992 1993 1994 1995 1996 1997 1992 1993 1994 1995 1996 1997

Total 2 ................................................. 4,715.4 4,765.6 4,840.5 4,941.8 5,105.0 5,164.3 5.0 5.0 4.9 4.8 4.9 4.8

New England .................................................. 269.2 273.6 282.3 300.5 337.7 334.6 5.1 5.1 5.1 5.3 5.9 5.7Connecticut .................................................. 82.5 77.9 74.2 73.3 85.1 83.8 6.1 5.7 5.4 5.2 6.0 5.8Maine ........................................................... 24.1 24.2 24.6 29.1 30.4 31.6 5.6 5.5 5.5 6.4 6.6 6.7Massachusetts ............................................. 114.3 119.6 129.8 141.5 162.3 159.5 4.6 4.7 5.0 5.3 5.9 5.7New Hampshire ........................................... 27.9 30.7 28.7 30.0 30.8 31.6 6.5 7.0 6.2 6.3 6.3 6.2Rhode Island ............................................... 12.9 14.1 16.8 16.2 19.2 18.5 3.4 3.7 4.4 4.1 4.9 4.6Vermont ....................................................... 7.5 7.1 8.2 10.4 9.9 9.6 3.5 3.2 3.6 4.5 4.2 4.0

Mideast ............................................................ 892.2 919.0 913.8 904.8 920.5 911.2 5.4 5.5 5.4 5.3 5.3 5.2Delaware ...................................................... 35.8 33.2 32.8 15.8 16.3 19.1 11.9 10.8 10.4 4.9 4.9 5.6District of Columbia ..................................... 9.9 10.8 11.1 13.4 12.8 11.2 2.4 2.6 2.7 3.3 3.1 2.8Maryland ...................................................... 73.5 74.9 78.1 95.0 93.8 92.0 4.3 4.3 4.4 5.2 5.1 4.8New Jersey .................................................. 216.3 212.6 209.3 205.2 209.4 212.4 7.3 7.1 6.8 6.6 6.7 6.6New York ..................................................... 340.8 351.1 353.7 343.8 349.9 351.5 5.2 5.3 5.3 5.1 5.2 5.1Pennsylvania ................................................ 215.9 236.4 228.8 231.6 238.3 225.0 4.8 5.2 5.0 5.0 5.0 4.6

Great Lakes .................................................... 811.8 796.6 800.6 837.8 826.4 834.8 4.9 4.7 4.6 4.7 4.5 4.5Illinois ........................................................... 247.2 238.2 226.6 237.0 236.1 224.5 5.4 5.1 4.7 4.8 4.7 4.4Indiana ......................................................... 127.2 124.6 130.8 136.9 127.2 128.3 5.7 5.4 5.5 5.6 5.1 5.1Michigan ....................................................... 143.8 150.1 160.8 170.3 162.8 171.4 4.2 4.3 4.4 4.5 4.2 4.4Ohio ............................................................. 211.4 206.9 208.7 222.1 226.7 234.1 5.0 4.8 4.7 4.8 4.8 4.9Wisconsin ..................................................... 82.2 76.8 73.7 71.5 73.6 76.5 4.0 3.6 3.4 3.2 3.2 3.3

Plains ............................................................... 256.9 247.4 249.5 252.4 283.7 298.5 3.7 3.4 3.4 3.3 3.6 3.7Iowa ............................................................. 33.3 31.4 34.3 35.8 37.7 37.8 3.1 2.9 3.1 3.1 3.2 3.1Kansas ......................................................... 27.2 29.3 30.5 34.0 42.7 45.4 2.9 3.1 3.1 3.4 4.1 4.2Minnesota .................................................... 92.3 84.6 77.9 79.8 89.8 96.6 4.9 4.3 3.9 3.8 4.2 4.4Missouri ........................................................ 77.6 76.7 80.7 79.3 84.1 84.0 3.8 3.7 3.8 3.6 3.8 3.7Nebraska ...................................................... 16.3 16.3 16.4 15.7 19.1 20.8 2.6 2.5 2.5 2.3 2.7 2.9North Dakota ............................................... 4.6 4.5 4.3 3.2 4.7 3.5 2.1 2.0 1.8 1.3 1.9 1.4South Dakota ............................................... 5.6 4.6 5.4 4.6 5.6 10.4 2.3 1.8 2.0 1.6 1.9 3.5

Southeast ........................................................ 1,185.6 1,233.6 1,263.2 1,286.3 1,354.4 1,361.0 5.5 5.5 5.4 5.3 5.5 5.4Alabama ....................................................... 61.7 61.6 60.7 60.6 61.7 65.0 4.5 4.3 4.2 4.0 4.0 4.1Arkansas ...................................................... 30.8 30.4 30.8 32.1 37.6 35.2 3.8 3.6 3.5 3.5 4.0 3.7Florida .......................................................... 196.0 203.8 201.0 210.0 239.8 240.9 4.2 4.2 3.9 4.0 4.4 4.2Georgia ........................................................ 156.4 167.6 174.4 180.1 195.0 188.9 6.2 6.3 6.3 6.2 6.4 6.0Kentucky ...................................................... 71.2 75.7 81.2 83.4 86.5 89.5 5.6 5.8 6.0 6.0 6.1 6.1Louisiana ...................................................... 62.1 60.4 58.1 51.0 55.7 58.0 4.7 4.4 4.1 3.5 3.7 3.8Mississippi .................................................... 23.4 23.2 23.2 22.6 20.6 21.7 3.0 2.8 2.7 2.5 2.3 2.4North Carolina ............................................. 191.4 211.4 219.8 225.3 231.6 225.0 7.1 7.6 7.6 7.5 7.5 7.1South Carolina ............................................. 111.7 105.8 113.8 111.6 117.2 116.9 8.8 8.1 8.4 8.0 8.2 7.9Tennessee ................................................... 124.2 129.7 135.1 136.3 136.4 149.4 6.4 6.4 6.4 6.2 6.2 6.6Virginia ......................................................... 122.1 128.9 130.7 141.4 146.2 143.3 5.3 5.4 5.3 5.6 5.6 5.3West Virginia ............................................... 34.6 35.1 34.4 31.9 26.1 27.2 6.8 6.7 6.4 5.8 4.7 4.8

Southwest ....................................................... 424.5 412.3 423.4 428.7 440.1 461.8 4.8 4.5 4.4 4.3 4.3 4.3Arizona ......................................................... 52.7 52.4 46.3 51.9 57.8 59.4 4.1 3.8 3.2 3.3 3.5 3.4New Mexico ................................................. 13.6 16.2 18.7 16.2 15.4 17.4 2.9 3.3 3.6 3.0 2.8 3.1Oklahoma ..................................................... 42.9 39.0 36.8 34.2 36.7 34.4 4.4 3.9 3.5 3.2 3.3 3.0Texas ........................................................... 315.3 304.7 321.6 326.4 330.2 350.6 5.2 4.9 4.9 4.8 4.7 4.8

Rocky Mountain ............................................. 108.8 107.4 117.3 123.4 128.7 140.7 4.0 3.7 3.8 3.8 3.8 4.0Colorado ...................................................... 61.5 60.0 66.7 72.2 72.7 80.3 4.5 4.2 4.4 4.5 4.4 4.7Idaho ............................................................ 13.7 11.3 11.9 11.3 12.3 12.4 4.0 3.1 3.1 2.8 3.0 2.9Montana ....................................................... 5.1 5.3 4.9 4.4 4.5 4.4 2.0 2.0 1.8 1.5 1.5 1.5Utah ............................................................. 22.9 25.0 28.1 28.6 32.7 36.7 3.6 3.7 3.9 3.7 4.0 4.3Wyoming ...................................................... 5.6 5.8 5.7 6.9 6.5 6.9 3.7 3.7 3.5 4.1 3.8 4.0

Far West .......................................................... 731.6 723.2 743.4 765.0 776.5 792.3 5.0 4.9 4.9 4.9 4.9 4.8Alaska .......................................................... 9.8 9.5 9.0 9.8 10.2 8.7 5.5 5.1 4.7 5.0 5.2 4.3California ...................................................... 522.7 528.6 536.4 548.6 557.5 569.4 4.9 5.0 5.0 5.0 4.9 4.9Hawaii .......................................................... 53.8 52.4 50.8 48.9 47.5 50.1 11.9 11.8 11.5 11.1 10.8 11.4Nevada ......................................................... 23.2 22.1 22.6 25.0 25.5 25.5 4.0 3.6 3.3 3.5 3.3 3.1Oregon ......................................................... 41.9 42.5 46.7 49.7 49.2 52.0 3.9 3.9 4.0 4.1 3.9 4.0Washington .................................................. 80.2 77.6 77.9 83.0 86.6 86.6 4.3 4.1 4.0 4.2 4.2 4.0

Puerto Rico ...................................................... 19.8 28.9 28.4 27.4 20.0 17.1 n.a. n.a. n.a. n.a. n.a. n.a.Other U.S. areas 3 ........................................... 10.0 11.3 13.0 13.1 10.9 10.3 n.a. n.a. n.a. n.a. n.a. n.a.Foreign 4 ........................................................... 4.7 2.9 5.4 2.4 6.0 2.2 n.a. n.a. n.a. n.a. n.a. n.a.

1. The data on employment in private industries used to calculate the shares shown in thistable are from BEA’s Regional Economic Information System. The totals are equal to employmentin private industries less employment of private households. The U.S. employment totals usedto calculate affiliate shares in this table differ from those used for the all-industries line of tables8 and 9, which are from table 6.4C of the ‘‘National Income and Product Accounts (NIPA) Tables.’’They differ from the NIPA estimates of employment because they include depository institutions,and, by definition, they exclude U.S. residents temporarily employed by U.S. businesses. Theyalso may differ from the NIPA estimates because of different definitions and revision schedules.

2. For consistency with the coverage of the private-industry employment data, U.S.-affiliate em-ployment in Puerto Rico, in ‘‘other U.S. areas,’’ and in ‘‘foreign’’ was excluded from the U.S.-affiliate employment total when the percentage shares on this line were computed.

3. Consists of the U.S. Virgin Islands, Guam, American Samoa, and all other outlying U.S.areas.

4. Consists of employees of U.S. affiliates working abroad.n.a. Not available.

August •

Table 11.—Manufacturing Employment by Nonbank U.S. Affiliates by State, 1992–96

Thousands of employees Employment as a percentage of total manufacturingemployment in the State 1

1992 1993 1994 1995 1996 1992 1993 1994 1995 1996

Total 2 ................................................................ 2,059.6 2,079.3 2,135.3 2,111.7 2,154.6 11.2 11.4 11.5 11.3 11.5

New England ................................................................. 110.5 115.7 117.7 120.2 122.7 10.1 10.8 11.1 11.4 11.7Connecticut ................................................................. 31.9 32.0 30.7 28.0 30.0 10.4 10.8 10.7 10.0 10.8Maine .......................................................................... 7.0 7.9 8.6 12.4 13.2 7.5 8.6 9.3 13.5 14.9Massachusetts ............................................................ 50.3 50.3 51.5 51.7 52.3 10.8 11.1 11.4 11.6 11.7New Hampshire .......................................................... 11.9 15.0 14.8 15.3 15.8 12.1 15.3 14.6 14.9 15.1Rhode Island .............................................................. 6.1 7.4 8.6 8.3 7.6 6.7 8.3 9.7 9.7 9.2Vermont ...................................................................... 3.3 3.1 3.5 4.5 3.8 7.5 7.1 7.9 9.9 8.2

Mideast ........................................................................... 346.5 350.9 346.4 329.2 327.6 12.5 12.9 12.9 12.5 12.6Delaware ..................................................................... 18.4 17.8 17.1 6.3 6.3 27.2 27.2 27.0 10.2 10.9District of Columbia .................................................... .4 .5 1.0 .8 .8 2.8 3.6 7.5 6.1 6.1Maryland ..................................................................... 27.5 27.0 27.6 25.3 25.9 14.9 15.0 15.3 14.3 14.8New Jersey ................................................................. 91.2 89.9 87.0 83.0 86.4 17.2 17.4 17.0 16.6 17.8New York .................................................................... 99.8 99.9 101.1 101.1 94.3 9.8 10.1 10.5 10.7 10.1Pennsylvania ............................................................... 109.2 115.8 112.6 113.5 114.7 11.4 12.2 11.9 12.0 12.2

Great Lakes ................................................................... 455.3 457.3 464.8 466.6 465.0 11.2 11.1 11.0 10.7 10.7Illinois .......................................................................... 118.5 117.8 115.2 112.9 116.8 12.8 12.6 12.0 11.7 12.0Indiana ........................................................................ 86.1 86.7 90.1 93.6 84.9 13.6 13.4 13.5 13.6 12.5Michigan ...................................................................... 75.3 80.0 82.9 88.2 82.9 8.3 8.8 8.7 9.0 8.5Ohio ............................................................................ 130.1 130.2 132.1 132.4 135.4 12.3 12.3 12.3 12.0 12.3Wisconsin .................................................................... 45.3 42.6 44.5 39.5 45.0 8.2 7.6 7.6 6.5 7.4

Plains .............................................................................. 116.7 113.9 121.0 124.2 132.6 8.4 8.1 8.4 8.4 8.9Iowa ............................................................................ 21.5 19.5 20.0 20.5 22.3 9.3 8.2 8.1 8.1 8.9Kansas ........................................................................ 13.1 14.0 15.3 16.6 17.6 7.1 7.6 8.1 8.6 8.9Minnesota ................................................................... 33.5 30.1 31.0 31.7 34.8 8.4 7.4 7.4 7.4 8.1Missouri ....................................................................... 35.3 37.5 39.7 42.7 44.4 8.5 9.1 9.5 10.1 10.6Nebraska ..................................................................... 8.3 8.4 9.4 8.3 8.7 8.2 8.1 8.6 7.4 7.6North Dakota .............................................................. 2.0 1.8 2.5 1.7 1.7 10.8 9.2 11.7 7.8 7.7South Dakota .............................................................. 3.0 2.6 3.1 2.7 3.1 8.1 6.5 7.1 5.8 6.4

Southeast ....................................................................... 595.7 614.3 637.7 618.0 620.6 12.9 13.2 13.4 12.9 13.2Alabama ...................................................................... 40.1 39.2 39.9 39.1 41.0 10.4 10.1 10.2 9.9 10.6Arkansas ..................................................................... 18.8 19.4 21.6 22.6 24.7 7.9 7.9 8.5 8.7 9.7Florida ......................................................................... 46.2 49.3 49.0 47.8 47.6 9.5 10.1 10.0 9.8 9.6Georgia ....................................................................... 72.4 76.4 77.4 79.4 85.3 13.2 13.7 13.3 13.4 14.5Kentucky ..................................................................... 48.0 52.0 57.6 59.7 62.7 16.8 17.6 18.8 18.9 20.0Louisiana ..................................................................... 24.3 23.3 22.5 21.9 22.8 13.0 12.5 11.9 11.6 12.0Mississippi ................................................................... 13.2 13.6 13.5 11.8 11.6 5.2 5.3 5.1 4.6 4.7North Carolina ............................................................ 119.5 120.6 127.3 124.5 115.7 14.2 14.2 14.7 14.4 13.6South Carolina ............................................................ 64.9 65.3 70.4 66.1 66.9 17.4 17.3 18.5 17.4 18.1Tennessee .................................................................. 77.6 82.8 85.9 83.3 83.0 15.0 15.6 15.9 15.4 15.9Virginia ........................................................................ 51.2 52.5 52.6 45.8 47.3 12.5 12.9 12.9 11.3 11.7West Virginia .............................................................. 19.5 19.9 20.0 16.0 12.0 23.6 23.9 24.3 19.3 14.6

Southwest ...................................................................... 142.9 138.3 151.1 156.3 171.5 10.6 10.0 10.7 10.8 11.6Arizona ........................................................................ 11.4 11.1 12.7 15.3 17.3 6.6 6.3 6.8 7.9 8.6New Mexico ................................................................ 3.2 2.9 3.9 3.5 3.6 7.8 6.8 8.8 7.8 7.8Oklahoma .................................................................... 16.5 15.0 15.3 14.8 15.5 10.1 8.9 8.9 8.6 8.8Texas .......................................................................... 111.8 109.3 119.2 122.7 135.1 11.5 11.0 11.8 11.9 12.7

Rocky Mountain ............................................................ 27.0 29.1 34.9 33.1 K 6.9 7.3 8.5 8.0 (D)Colorado ..................................................................... 13.7 14.5 18.1 19.2 19.2 7.4 7.8 9.6 9.9 9.7Idaho ........................................................................... 4.1 3.2 3.6 2.7 3.0 6.2 4.6 5.0 3.8 4.1Montana ...................................................................... 1.3 1.5 1.1 .8 F 5.7 6.4 4.7 3.4 (D)Utah ............................................................................ 6.8 8.8 10.8 9.5 10.3 6.4 8.0 9.3 7.7 8.0Wyoming ..................................................................... 1.1 1.1 1.3 1.7 1.4 11.7 11.4 12.9 17.4 12.9

Far West ......................................................................... 250.3 243.8 244.0 247.7 264.4 9.9 10.0 10.1 10.2 10.5Alaska ......................................................................... 2.5 2.9 2.5 2.2 2.0 13.7 16.8 14.9 12.8 12.2California ..................................................................... 196.6 191.1 191.9 193.1 205.0 10.4 10.6 10.7 10.8 11.1Hawaii ......................................................................... 2.6 2.5 1.8 2.0 1.9 13.1 13.4 10.0 11.7 11.3Nevada ........................................................................ 3.6 3.8 3.8 4.2 4.6 13.6 12.8 11.2 11.4 11.8Oregon ........................................................................ 18.0 18.5 20.2 21.7 21.6 8.5 8.6 9.0 9.4 9.1Washington ................................................................. 27.0 25.0 23.8 24.5 29.3 7.8 7.3 7.0 7.3 8.5

Puerto Rico ..................................................................... 11.5 13.2 14.8 12.5 12.4 n.a. n.a. n.a. n.a. n.a.Other U.S. areas 3 .......................................................... 2.5 2.4 2.7 2.4 G n.a. n.a. n.a. n.a. n.a.Foreign 4 .......................................................................... .9 .3 .2 0 0 n.a. n.a. n.a. n.a. n.a.

n.a. Not available.1. The data on employment in manufacturing used to calculate the shares shown in this table

are from BEA’s Regional Economic Information System (REIS). The U.S. manufacturing employ-ment totals used to calculate shares in this table differ from the NIPA estimates for manufacturingin 1992 and 1996 used for table 9 (see footnote 1 to table 9). They differ from the NIPA estimatesof employment because, by definition, they exclude U.S. residents temporarily employed abroadby U.S. businesses. They also may differ from the NIPA estimates because of different definitionsand revision schedules.

2. Total affiliate manufacturing employment and the shares of all-U.S.-business manufacturingemployment accounted for by affiliates in this table differ from those shown in table 9 (see foot-

note 3 to table 9). For consistency with the coverage of the private-industry employment data,U.S. affiliate employment in Puerto Rico, in ‘‘other U.S. areas,’’ and in ‘‘foreign’’ was excludedfrom the U.S.-affiliate total when the percentage shares on this line were computed.

3. Consists of the U.S. Virgin Islands, Guam, American Samoa, and all other outlying U.S.areas.

4. Consists of employees of U.S. affiliates working abroad.NOTE.—Size ranges are given in employment cells that are suppressed. The size ranges are

A—1 to 499; F—500 to 999; G—1,000 to 2,499; H—2,500 to 4,999; I—5,000 to 9,999; J—10,000to 24,999; K—25,000 to 49,999; L—50,000 to 99,999; M—100,000 or more.

• August

Profitability

In , the net income of affiliates—after-taxprofits on a financial-accounting basis—increased. billion, to . billion, following an in-crease of . billion in . The increasein was mainly due to increased operatingprofits, as “profit-type return”—before-tax prof-its generated from current production on aneconomic-accounting basis—increased . bil-lion, to . billion (table ). Capital losses of. billion in shifted to capital gains of .billion, and U.S. income taxes paid by affiliatesincreased . billion, to . billion.

The large increases in net income and profit-type return in continue a pattern of stronggrowth since . Some of this growth reflectedthe entry of affiliates into the direct investment

. Net income of affiliates is that shown in the affiliates’ income state-ments; it includes capital gains and losses, income from investments, andother nonoperating income.

. Affiliates’ profit-type return is calculated before the deduction of in-come taxes or depletion charges; it excludes capital gains and losses, incomefrom investments, and other nonoperating income, and it includes an inven-tory valuation adjustment (). Conceptually, profit-type return should alsoinclude a capital consumption adjustment (dj), but estimates of dj byindustry are not available; estimates of profit-type return with both anddj are presented for nonfinancial U.S. affiliates in table . For a moredetailed description of this measure and for a comparison of this measureand the corresponding measure used in the U.S. national income and productaccounts, see Jeffrey H. Lowe, “Gross Product of U.S. Affiliates of ForeignCompanies, –,” S (June ): .

Table 12.—Net Income and Profit-Type Return of Nonbank [Millions of

Net inco

1992 1993 1994

All industries .................................................... –21,331 –4,354 8,132

Petroleum ....................................................................... –485 1,098 428

Manufacturing ................................................................ –9,171 –6,351 6,432Food and kindred products ........................................ 238 –1,621 –172Chemicals and allied products ................................... –1,281 3,338 5,123Stone, clay, and glass products ................................ –1,005 –563 –439Primary metal industries ............................................. –2,014 –1,445 1,025Fabricated metal products .......................................... –15 –408 –641Industrial machinery and equipment .......................... –1,638 –2,193 52Electronic and other electric equipment .................... –1,112 –1,778 13Transportation equipment ........................................... –920 –683 408Other ........................................................................... –1,424 –998 1,063

Wholesale trade ............................................................ –335 –70 1,787

Retail trade .................................................................... –2,086 –611 982

Finance, except depository institutions .................... 551 1,087 473

Insurance ....................................................................... 2,318 4,960 2,961

Real estate ..................................................................... –4,672 –3,142 –2,248

Services .......................................................................... –3,125 –2,359 –2,347Hotels and other lodging places ................................ –1,603 –1,427 –1,181Business services ....................................................... 136 –45 238Motion pictures ........................................................... –1,200 –422 –314Other ........................................................................... –458 –465 –1,090

Other industries ............................................................ –4,326 1,034 –336

* Less than $500,000.1. Net income is after-tax profits on a financial accounting basis, as shown in affiliates’ income

statements. It includes capital gains and losses, income from investments, and other nonoperatingincome.

universe, but most of it was attributable to theimproved profitability of existing affiliates.

By -based industry, affiliates’ net incomeand profit-type return in most of the majorindustries increased substantially in . Inmanufacturing, affiliates’ net income increased. billion, or percent, mainly because of a. billion increase in profit-type return. Withinmanufacturing, profit-type return increased .billion in transportation equipment, reflectingincreased operating profits by affiliates in mo-tor vehicle manufacturing. In wholesale trade,profit-type return increased . billion, mainlyas a result of increased operating profits byaffiliates in motor vehicle wholesale trade.

Affiliates’ net income increased more than billion in finance, except depository institutions,and in insurance, reflecting large increases inboth operating profits and capital gains. Inpetroleum, net income and profit-type returneach increased more than billion, but the in-creases were smaller than in . As a resultof increases in operating profits, affiliates’ netincome in real estate and in services both turnedpositive for the first time in over a decade.

On a basis, affiliates’ net income andprofit-type return in were positive in most

U.S. Affiliates by SIC-Based Industry of Affiliate, 1992–97 dollars]

me 1 Profit-type return 2

1995 1996 1997 1992 1993 1994 1995 1996 1997

15,493 24,379 42,547 2,914 8,798 22,615 27,847 43,007 57,849

2,101 5,401 6,527 3,044 3,298 4,062 4,735 6,713 7,918

9,189 8,096 14,268 1,680 4,329 12,310 12,726 15,965 20,886512 3,425 675 384 151 211 –71 571 1,870

3,834 878 4,359 4,602 6,323 7,921 6,117 6,724 5,532801 597 2,226 –557 –234 16 977 1,345 2,837

1,210 990 938 –565 (*) 790 1,368 1,535 1,335101 421 1,136 82 –79 –467 271 571 909

–384 –254 157 –1,261 –1,301 677 110 599 1,405607 –320 1,308 –788 –759 504 928 527 1,681410 187 1,690 –880 –282 391 483 118 2,317

2,098 2,172 1,779 663 510 2,266 2,543 3,975 3,000

–157 1,548 3,439 770 1,529 3,090 4,541 4,139 7,521

466 305 1,213 14 272 1,778 2,199 1,814 2,128

1,287 1,049 4,124 547 894 512 506 2,620 3,746

3,434 5,667 9,071 1,966 2,726 3,379 1,841 5,030 7,907

–2,022 –1,722 35 –2,706 –2,199 –2,049 –1,899 –1,244 296

–2,403 –1,787 159 –2,310 –1,620 –2,221 –2,150 –733 480–1,142 –289 478 –1,541 –1,206 –1,147 –1,110 –312 139

24 –1,235 –222 225 310 260 90 –472 479–576 140 107 –682 –434 –555 –373 –12 –240–709 –403 –204 –312 –291 –779 –757 63 102

3,599 5,822 3,712 –91 –431 1,755 5,350 8,745 6,966

2. Profit-type return is a component of gross product originating in U.S. affiliates. It is beforeincome taxes; it excludes capital gains and losses, income from investments, and other nonoperat-ing income; it is before deduction of depletion charges; and it includes an inventory valuationadjustment.

. In real estate, the net income of affiliates was negative every year in–; in services, net income was negative every year in –.

August •

of the industries with substantial foreign directinvestment activity (table ). In finance (exceptdepository institutions) and insurance, operatingprofits were particularly strong, accounting formore than percent of gross product.

Return on assets.—The rate of return on assetsof nonfinancial affiliates increased to . percentin from . percent in (table andchart ). In comparison, the rate of return forall U.S. nonfinancial corporations was unchangedat . percent. Although the rate of return foraffiliates has been lower than that for U.S. nonfi-nancial corporations for many years, the gap has

. For both U.S. affiliates and all U.S. corporations, the rate of returnis measured as profit-type return plus interest paid as a percentage of totalassets. In the computation of these measures, both the return and the assetsthat generate the return are valued in prices of the current period.

Table 13.—Net Income and Profit-Type Return of NonbankU.S. Affiliates by NAICS-Based Industry of Affiliate, 1997

Netincome 1

Profit-type

return 2

Adden-dum:

Profit-typereturn as

apercent-age ofgross

product

All industries ..................................... 42,547 57,849 15.0

Manufacturing ................................................. 18,826 26,027 13.8

Food ............................................................. 183 1,231 11.2Beverages and tobacco products ............... 605 1,264 21.4Paper ........................................................... 63 73 1.4Printing and related support activities ........ 189 301 10.7Petroleum and coal products ...................... 4,463 4,859 20.7

Chemicals .................................................... 4,280 5,443 13.3Plastics and rubber products ...................... 260 564 7.1Nonmetallic mineral products ...................... 2,225 2,835 23.5Primary metals ............................................ 788 1,140 13.3Fabricated metal products .......................... 956 812 10.3Machinery .................................................... 1,390 2,373 14.3

Computers and electronic products ............ –257 331 2.1Electrical equipment, appliances, and

components ............................................. 631 710 9.4Transportation equipment ........................... 2,060 2,709 20.0

Motor vehicles, bodies and trailers,and parts ............................................. 1,883 2,409 21.2

Other ........................................................ 176 300 13.7Other ............................................................ 990 1,382 14.5

Wholesale trade ............................................. 3,889 8,147 15.7Motor vehicles and motor vehicle parts

and supplies ............................................ 1,543 2,605 21.9Other ............................................................ 2,346 5,542 13.9

Retail trade ..................................................... 1,197 2,039 8.2

Information ...................................................... 2,445 4,041 14.9Publishing industries ................................... 338 310 4.2Motion picture and sound recording

industries ................................................. 28 –359 –14.1Broadcasting and telecommunications ....... 2,004 3,850 23.8Information services and data processing

services ................................................... 75 240 22.3

Finance (except depository institutions)and insurance ............................................ 11,220 12,077 45.9

Real estate and rental and leasing ............. 204 481 5.3

Professional, scientific, and technicalservices ....................................................... –570 –265 –4.4

Other industries ............................................. 5,337 5,302 10.4

1. See table 12, footnote 1.2. See table 12, footnote 2.

been narrowing recently, and the gap in wasthe smallest since .

Expanded Information from theBenchmark Survey

The benchmark survey provides informationon U.S.-affiliate research and development (),employment, and trade in goods that is collectedonly in benchmark survey years. The data on include expenditures on performed byaffiliates broken down by source of funding—that

Table 14.—Return on Assets of Nonfinancial U.S. Affiliatesand U.S. Domestic Nonfinancial Corporations, 1987–97

Nonfinancial U.S. affiliates 1 U.S.domestic

non-financialcorpora-

tions

Billions of dollars Percent

Percent

Property income

Totalassets 3

Rate ofreturn

((col. 1/col.4) x

100) Rate ofreturn 4

Total Profit-typereturn 2

Monetaryinterest

paid

(1) (2) (3) (4) (5) (6)

1987 ......... 30.3 10.7 19.6 546.6 5.5 6.61988 ......... 37.8 11.7 26.1 670.2 5.6 7.01989 ......... 43.9 8.5 35.4 833.4 5.3 7.01990 ......... 39.3 –.1 39.4 984.2 4.0 6.81991 ......... 38.7 –2.1 40.8 1,076.0 3.6 6.61992 ......... 37.9 2.1 35.7 1,097.3 3.5 6.41993 ......... 42.0 7.0 35.0 1,135.2 3.7 6.61994 ......... 56.5 21.2 35.4 1,211.5 4.7 7.41995 ......... 66.4 26.3 40.1 1,270.5 5.2 7.81996 ......... 80.8 40.2 40.6 1,338.4 6.0 8.01997 ......... 94.6 50.5 44.1 1,464.1 6.5 8.0

1. Excludes finance, except depository institutions, and insurance (in addition to depositoryinstitutions, which are excluded from all data on U.S. affiliate operations).

2. Profit-type return as shown in table 13 plus a capital consumption adjustment (CCAdj).(Estimates of CCAdj by industry are not available.)

3. Average of beginning- and end-of-year value.4. Equals the ratio of property income to total assets. Data on property income of U.S. do-

mestic nonfinancial corporations are from tables 1.16 and 8.18 in the national income and prod-uct accounts. Data on total assets are from the Federal Reserve Board’s flow of funds accounts.

• August

is, whether the is performed for the affili-ates themselves, for the Federal Government, orfor others under contract. The data on affiliateemployment include the number of employeescovered by collective bargaining agreements. Thedata on U.S. trade in goods of affiliates includeexports and imports by product and by countryof destination or origin. They also include im-ports by intended use—that is, whether intendedfor further manufacture, for resale without fur-ther processing, or as additions to the affiliates’capital stock.

Research and development

In , expenditures on performed by U.S.affiliates (both for themselves and for others)totaled billion and accounted for about percent of the performed by all U.S. busi-nesses (table ). The amount of performedby affiliates was slightly less than the amount of funded by affiliates, which includes per-formed for affiliates by others under contract andexcludes performed by affiliates for others.

Of the total performed by affiliates, nearlyall— percent—was financed by the affiliatesthemselves, less than percent was financed byother private companies under contract, and lessthan percent was financed by the Federal Gov-ernment. In contrast, percent of the

. Since , data on imports intended for further manufacture byaffiliates have also been collected in ’s annual surveys of affiliateoperations.

. funded by affiliates is the basis on which annual data on affiliate expenditures were collected in ’s previous surveys. Beginning withthe annual survey, the basis will shift to performed by affiliates,which is the basis on which National Science Foundation surveys collectinformation on from U.S. businesses.

Table 15.—Research and Development Performed byNonbank U.S. Affiliates and by All U.S. Businesses, 1997

Millions of dollars Percent of total Adden-dum:

NonbankU.S.

affiliatesas a

percent-age ofall U.S.

busi-nesses

Bynonbank

U.S.affiliates

By allU.S.busi-

nesses 1

Bynonbank

U.S.affiliates

By allU.S.busi-

nesses 1

Total ........................... 19,260 157,539 100.0 100.0 12.2

For Federal Government ......... 84 23,928 .4 15.2 .4

For private companies ............. 19,176 133,611 99.6 84.8 14.4For themselves .................... 17,881 n.a. 92.8 n.a. n.a.For others ............................ 1,295 n.a. 6.7 n.a. n.a.

Addendum:Total research and

development funded byaffiliates 2 ......................... 19,690 .............. .............. .............. ..............

1. Data are from the National Science Foundation.2. See table 2, footnote 1.n.a. Not available.

performed by all U.S. businesses was financedby the Federal Government. U.S. affiliates ac-counted for percent of the privately funded performed by all U.S. businesses, but theyaccounted for less than percent of the federallyfunded . The low affiliate share of federallyfunded may reflect the fact that much ofthis research is military related and is thereforegenerally off limits to foreign-owned companies.

The ratio of performed by affiliates to affil-iate gross product was percent, twice the ratio of to gross product for all U.S. businesses. Thehigher ratio for affiliates reflects the tendency ofU.S. affiliates to be large companies, which typ-ically perform more than small companies,and the tendency for affiliates to be more con-centrated in research-intensive industries, such aschemicals.

By -based industry, more than one-halfof the total expenditures on performedby affiliates was accounted for by affiliates intwo manufacturing industries: Chemicals andcomputers and electronic products (table ).Within chemicals, affiliates in pharmaceuti-cals and medicines—one of the most research-intensive industries—accounted for more thanone-fourth of affiliate . In , expenditureson performed by these affiliates amounted toabout percent of affiliate sales and one-third ofaffiliate gross product. In comparison, for affili-ates in all industries, the ratio of to sales was

Table 16.—Research and Development Performed byNonbank U.S. Affiliates by NAICS-Based Industry ofAffiliate, 1997

Millionsof

dollars

Percent-age of

all-indus-triestotal

As apercentage of:

Sales Grossproduct

All industries .................................. 19,260 100.0 1.1 5.0

Manufacturing ................................................ 15,627 81.1 2.3 8.3

Chemicals ................................................. 7,009 36.4 4.9 17.1Pharmaceuticals and medicines .......... 5,398 28.0 10.9 33.5Other ..................................................... 1,611 8.4 1.7 6.5

Machinery .................................................. 980 5.1 1.7 5.9Computers and electronic products ......... 4,012 20.8 5.5 25.6

Computers and peripheral equipment 250 1.3 1.5 24.5Communications equipment ................. 2,252 11.7 9.2 38.2Semiconductors and other electronic

components ...................................... 633 3.3 3.6 14.0Navigational, measuring, and other

instruments ....................................... 619 3.2 9.6 24.4Other ..................................................... 258 1.3 3.2 15.2

Electrical equipment, appliances, andcomponents .......................................... 809 4.2 3.1 10.7

Transportation equipment ......................... 707 3.7 1.0 5.2Other ......................................................... 2,110 11.0 .7 2.2

Wholesale trade ............................................ 1,895 9.8 .4 3.7Information ..................................................... 588 3.1 .7 2.2Professional, scientific, and technical

services ..................................................... 762 4.0 4.8 12.7Other .............................................................. 388 2.0 .1 .3

August •

percent, and the ratio of to gross productwas percent. Within computers and electronicproducts, the research intensity of affiliate oper-ations was particularly high in communicationsequipment and in navigational, measuring, andother instruments.

Union-represented employment

In , percent of the employees of nonbankU.S. affiliates were covered by collective bargain-ing agreements (table ). The union-representedshare of affiliate employment varied considerablyacross industries: By -based industry at thesector level, the share ranged from percentin transportation and warehousing to zero per-

Table 17.—Employment of Nonbank U.S. Affiliates Coveredby Collective Bargaining Agreements by NAICS-BasedIndustry of Affiliate, 1997

Thousands ofemployees

Unionemploy-ment as

apercent-age oftotal

employ-ment

Unionemploy-

ment

Totalemploy-

ment

All industries ......................................... 774.2 5,164.3 15.0

Manufacturing ..................................................... 380.8 2,227.0 17.1

Food ................................................................. 39.3 152.7 25.7Beverages and tobacco products ................... 9.5 31.2 30.4Paper ............................................................... 26.5 61.6 43.0Petroleum and coal products .......................... 9.2 58.8 15.6

Chemicals ........................................................ 40.8 389.4 10.5Plastics and rubber products .......................... 26.4 124.3 21.2Nonmetallic mineral products .......................... 30.0 132.8 22.6Primary metals ................................................. 36.9 95.6 38.6Fabricated metal products .............................. 26.9 123.8 21.7

Machinery ........................................................ 34.6 260.8 13.3Computers and electronic products ................ 20.9 239.6 8.7Electrical equipment, appliances, and

components ................................................. 16.1 129.5 12.4Transportation equipment ................................ 31.5 207.9 15.2

Motor vehicles, bodies and trailers,and parts ................................................. 28.4 170.0 16.7

Other ............................................................ 3.1 37.9 8.2Other ................................................................ 32.2 219.0 14.7

Wholesale trade ................................................. 30.3 538.5 5.6Motor vehicles and motor vehicle parts and

supplies ....................................................... 11.0 88.0 12.5Other ................................................................ 19.3 450.5 4.3

Retail trade ......................................................... 192.3 688.7 27.9Food and beverage stores .............................. 187.8 475.0 39.5Other ................................................................ 4.4 213.7 2.1

Information .......................................................... 24.3 293.4 8.3

Finance (except depository institutions) andinsurance ........................................................ 0 219.8 0

Real estate and rental and leasing ................. 1.3 47.0 2.8

Professional, scientific, and technicalservices ........................................................... 2.0 82.6 2.4

Other industries ................................................. 143.1 1,067.3 13.4Mining .............................................................. 12.3 65.2 18.9Construction ..................................................... 12.5 76.9 16.3Transportation and warehousing .................... 70.0 185.5 37.7Administration, support, and waste

management ................................................ 23.8 279.1 8.5Accommodation and food services ................. 18.9 270.4 7.0Other ................................................................ 5.6 190.2 2.9

cent in finance (except depository institutions)and insurance. The union employment sharein manufacturing was percent. Within man-ufacturing, the share was highest in such basicindustries as paper ( percent) and primary met-als ( percent); the share was lowest in suchresearch-intensive industries as chemicals ( per-cent) and computers and electronic products (percent).

Overall, the union employment share for af-filiates in ( percent) was higher than thatfor all U.S. private wage and salary workers (percent) (table ). The higher share for af-filiates mainly reflects industry-mix effects; forexample, on an -division basis, services (anindustry with relatively low unionization) ac-counted for nearly one-third of employment forall private wage and salary workers but for lessthan percent of affiliate employment. On adisaggregated-industry basis, the union employ-ment share for U.S. affiliates exceeded that forall private wage and salary workers in half of theindustries for which comparable data are avail-able. The difference is particularly marked inretail trade, where the affiliate union employ-ment share was percent, compared with percent for all wage and salary workers. In thisindustry, the higher affiliate share can probablybe attributed to the tendency for foreign directinvestment to be concentrated in large-scale en-terprises (such as large grocery store chains),

Table 18.—Union Employment as a Percentage of TotalEmployment for Nonbank U.S. Affiliates and All PrivateWage and Salary Workers by SIC-Based Industry,1992 and 1997

U.S. affiliates All private wageand salaryworkers 1

1992 19971992 1997

All industries .................................. 20.3 15.0 12.5 10.6

Mining 2 ..................................................... 35.1 26.5 16.1 14.3Construction .............................................. 33.5 17.4 21.1 19.5Manufacturing 3 ......................................... 24.7 16.5 21.0 17.2

Transportation ........................................... 35.8 35.0 30.3 27.9Communication and public utilities .......... 25.9 10.0 36.3 26.7Wholesale trade ....................................... 9.7 5.3 7.5 6.6

Retail trade ............................................... 20.3 23.1 7.2 6.1Finance, insurance, and real estate 4 ..... .8 .4 2.9 2.8Services .................................................... 12.2 7.8 7.1 6.5Other 5 ...................................................... 6.9 5.7 2.8 2.4

1. Estimates are from household survey data reported in Bureau of Labor Statistics, Employ-ment and Earnings, January 1994 and January 1999. These estimates include employees ofdepository institutions.

2. For U.S. affiliate data, excludes oil and gas extraction.3. Includes petroleum and coal products manufacturing.4. For U.S. affiliate data, excludes depository institutions.5. For U.S. affiliates, consists of agriculture, forestry, and fishing plus all industries grouped

in petroleum other than petroleum and coal products manufacturing. For all U.S. businesses,consists of agriculture.

NOTE.—For U.S. affiliates, ‘‘union employment’’ refers to employees covered by a collectivebargaining agreement. For all private wage and salary workers, ‘‘union employment’’ refers tomembers of a labor union or an employee association similar to a union as well as workerswho report no union affiliation but whose jobs are covered by a union or an employee associa-tion contract.

• August

. For a discussion of trends in U.S. affiliate trade in –, see WilliamJ. Zeile, “Merchandise Trade of U.S. Affiliates of Foreign Companies,” S (October ): –.

which generally have higher rates of unionizationthan small businesses.

Both in the aggregate and within most -based industries, the union-represented share ofaffiliate employment was substantially lower in than in . For affiliates in all industries,the share dropped from percent in to percent in . In comparison, the union em-ployment share for all private wage and salaryworkers declined less rapidly, from percent to percent. The more rapid decline in unionrepresentation for affiliates may reflect a relativeabsence of constraints on foreign direct investors(compared with domestically owned U.S. busi-nesses with existing union contracts) to set upnew operations in areas with low union activity.

In manufacturing, the union employmentshare for affiliates declined from percent to percent, while the share for all workers declinedfrom percent to percent. Declines in theaffiliate shares were also relatively pronounced inmining, construction, and communication andpublic utilities.

Trade in goods

U.S. affiliates have accounted for a substantialshare of U.S. trade in goods since at least ,the first year for which annual data on affiliateoperations are available: In most years, affili-

Table 19.—U.S. Trade in Goods by Nonbank

Millions of dollar

Total trade byaffiliates

Intraa

1992 1997 1992

U.S. exports of goods, total ........................................ 103,925 140,924 48,7Food, beverages, and tobacco .................................. 19,247 21,006 9,9Crude materials, inedible, except fuels ..................... 9,344 10,237 5,6Mineral fuels and lubricants ....................................... 6,471 6,318 3,7Chemicals ................................................................... 14,929 20,070 5,4Machinery ................................................................... 22,504 40,615 9,8

Industrial machinery and equipment ..................... ................ 17,162 ...........Office machines and automatic data processing

machines ............................................................ ................ 3,414 ...........Telecommunications, sound equipment, and other

electrical machinery ........................................... ................ 20,039 ...........Road vehicles and parts ............................................ 4,882 9,676 2,7Other transport equipment ......................................... 4,122 3,717 2,8Other products ............................................................ 22,426 29,285 8,4

U.S. imports of goods, total ........................................ 184,464 261,482 137,7Food, beverages, and tobacco .................................. 9,386 12,193 4,9Crude materials, inedible, except fuels ..................... 5,029 5,575 2,3Mineral fuels and lubricants ....................................... 18,890 18,278 9,9Chemicals ................................................................... 13,767 20,877 10,6Machinery ................................................................... 57,295 84,407 48,1

Industrial machinery and equipment ..................... ................ 21,087 ...........Office machines and automatic data processing

machines ............................................................ ................ 13,940 ...........Telecommunications, sound equipment, and other

electrical machinery ........................................... ................ 49,380 ...........Road vehicles and parts ............................................ 36,474 62,479 31,5Other transport equipment ......................................... 3,670 3,697 2,6Other products ............................................................ 39,955 53,976 27,4

1. Data are from the Bureau of the Census.2. Trade between U.S. affiliates and their foreign parent groups.

ates have accounted for – percent of exportsand for – percent of imports. In , theshare of U.S. exports of goods accounted for byaffiliates was percent, down from percentin . Most of this decrease occurred in and reflected reductions in exports by wholesaletrade affiliates—particularly affiliates of Japanesegeneral trading companies and foreign-ownedwholesalers specializing in agricultural commodi-ties. The affiliate share of U.S. imports of goodswas percent in , down from percentin . As with exports, most of the decreaseoccurred in ; the level of affiliate imports de-creased in as a result of decreased importsby wholesale trade affiliates—mainly Japanese-and Korean-owned affiliates specializing in elec-trical goods and in professional equipment andsupplies.

By product.—In , U.S. affiliates accounted formore than percent of U.S. exports of food,beverages, and tobacco and for about half ofU.S. exports of mineral fuels and lubricants (aproduct category that mainly consists of petro-leum and products); both shares were somewhatlower in than in (table and chart ).U.S. affiliates continued to account for less than

U.S. Affiliates by Product, 1992 and 1997

s As a percentage of total U.S. trade 1 Addenda: Intrafirmtrade as a

percentage of totaltrade byaffiliates

firm trade byffiliates 2

Total trade byaffiliates

Intrafirm trade byaffiliates 2

1992 19971997 1992 1997 1992 1997

67 62,815 23.2 20.4 10.9 9.1 46.9 44.651 12,085 47.0 42.6 24.3 24.5 51.7 57.537 2,578 36.3 31.8 21.9 8.0 60.3 25.253 2,642 57.8 50.1 33.5 20.9 58.0 41.832 9,666 33.4 28.3 12.1 13.6 36.4 48.264 18,493 16.3 16.1 7.1 7.3 43.8 45.5

..... 6,583 ................ 17.9 ................ 6.9 ................ 38.4

..... 1,273 ................ 6.6 ................ 2.5 ................ 37.3

..... 10,637 ................ 19.2 ................ 10.2 ................ 53.184 4,761 12.9 16.8 7.3 8.3 57.0 49.273 1,733 10.7 8.6 7.4 4.0 69.7 46.672 10,857 20.4 17.2 7.7 6.4 37.8 37.1

99 195,495 34.6 30.0 25.9 22.5 74.7 74.868 6,319 33.5 30.6 17.7 15.9 52.9 51.890 2,878 36.0 25.3 17.1 13.1 47.5 51.632 10,580 34.5 23.4 18.2 13.5 52.6 57.968 16,657 49.7 41.5 38.5 33.1 77.5 79.855 67,811 38.6 31.1 32.5 25.0 84.0 80.3..... 15,669 ................ 26.6 ................ 19.8 ................ 74.3

..... 12,420 ................ 18.6 ................ 16.6 ................ 89.1

..... 39,722 ................ 42.2 ................ 33.9 ................ 80.490 49,899 48.5 55.4 42.0 44.2 86.6 79.951 2,795 43.9 31.2 31.7 23.6 72.2 75.647 38,555 22.7 19.0 15.6 13.6 68.7 71.4

August •

percent of U.S. exports of machinery, ofroad vehicles and parts, and of other transportequipment; however, the share for road vehi-cles and parts— percent—was higher than in, reflecting expanded affiliate operations inthe motor vehicle industry.

Affiliate exports of food, beverages, and to-bacco were mainly exports to the affiliates’ foreignparent groups; most of these intrafirm exportswere by Japanese-owned wholesale trade affili-ates. Intrafirm exports also accounted for morethan half of affiliate exports of telecommuni-

Table 20.—Exports by Product, and Imports by Proby NAICS-Based Indus

[Millions of

All

U.S. exports of goods, total .............................................................................By product:

Food, beverages, and tobacco ...................................................................Crude materials, inedible, except fuels ......................................................Mineral fuels and lubricants ........................................................................Chemicals ....................................................................................................Industrial machinery and equipment ...........................................................Office machines and automatic data processing machines ......................Telecommunications, sound equipment, and other electrical machineryRoad vehicles and parts .............................................................................Other transport equipment ..........................................................................Other products .............................................................................................

U.S. imports of goods, total .............................................................................By product:

Food, beverages, and tobacco ...................................................................Crude materials, inedible, except fuels ......................................................Mineral fuels and lubricants ........................................................................Chemicals ....................................................................................................Industrial machinery and equipment ...........................................................Office machines and automatic data processing machines ......................Telecommunications, sound equipment, and other electrical machineryRoad vehicles and parts .............................................................................Other transport equipment ..........................................................................Other products .............................................................................................

By intended use:Capital equipment ........................................................................................Goods for resale without further manufacture ............................................Goods for further manufacture ....................................................................

cations, sound equipment, and other electricalmachinery.

Wholesale trade affiliates accounted for three-fourths of affiliate exports of food, beverages, andtobacco and for percent of affiliate exportsof crude materials (a commodity group that in-cludes soybeans, oil seeds, wood, pulp, and metalores) (table ). Affiliates in manufacturing ac-counted for three-fourths of affiliate exports ofchemicals and for more than percent ofaffiliate exports of telecommunications, soundequipment, and other electrical machinery.

On the import side, U.S. affiliates in accounted for percent of U.S. imports ofroad vehicles and parts, up from percentin , and for more than percent ofU.S. imports of chemicals and of telecommu-nications, sound equipment, and other elec-trical machinery (table and chart ). Forall three product groups, about percentof the affiliate imports were intrafirm importsfrom the affiliates’ foreign parent groups. Theaffiliate imports of road vehicles and partswere mainly by wholesale trade affiliates ofJapanese, German, and Swedish automobilefirms. Wholesale trade affiliates also accountedfor most of the affiliate imports of telecom-munications, sound equipment, and other elec-trical machinery, and manufacturing affiliatesaccounted for most of the affiliate imports ofchemicals.

duct and Intended Use, of Nonbank U.S. Affiliatestry of Affiliate, 1997

dollars]

industries Manufacturing Wholesale trade Other

140,924 70,053 63,231 7,640

21,006 4,302 15,562 1,14210,237 1,128 8,246 863

6,318 2,385 3,231 70220,070 15,018 4,792 26017,162 9,585 7,161 416

3,414 1,256 1,566 59220,039 12,755 7,252 329,676 5,514 4,107 553,717 1,818 1,779 120

29,285 16,293 9,535 3,457

261,482 99,304 155,716 6,462

12,193 3,783 7,632 7785,575 3,027 2,438 110

18,278 11,086 6,782 41020,877 15,445 5,426 621,087 10,309 10,489 28913,940 3,209 10,186 54549,380 18,410 30,883 8762,479 13,742 48,651 86

3,697 1,848 1,273 57653,976 18,446 31,954 3,576

1,631 720 384 527176,851 33,490 138,186 5,17583,001 65,093 17,146 762

• August

Imports by intended use.—About two-thirds ofthe imports by U.S. affiliates in were goodsfor resale without further processing, assembly, ormanufacture by the affiliates. For wholesale tradeaffiliates, the share of goods for resale withoutfurther manufacture was just under percent.

Most of the remaining imports by affiliateswere goods for further manufacture by the affil-iates; as would be expected, these imports weremainly by manufacturing affiliates. About two-thirds of the imports by manufacturing affiliateswere goods for further manufacture.

By country of destination or origin.—Among the largest U.S. trading partners in , the affil-iate shares of U.S. exports of goods were highestfor Japan ( percent), Sweden ( percent), andthe Republic of Korea ( percent) (table , col-umn ). For these three trading partners, mostof the affiliate exports to the country were byaffiliates with ’s in the country; for Japan,more than percent of all affiliate exports toJapan were by Japanese-owned affiliates (table ,column ). The affiliate exports to Japan andKorea were mainly by wholesale trade affiliates

(including affiliates of the countries’ large generaltrading companies); in contrast, the affiliate ex-ports to Sweden were mainly by manufacturingaffiliates.

The affiliate share of U.S. exports to Japan wassubstantially lower in than in , partlydue to reduced exports by wholesale trade affil-iates of Japan’s general trading companies. Incontrast, the affiliate share of U.S. exports toSweden was substantially higher than in ,reflecting expanded production and exports bySwedish-owned manufacturing affiliates.

On the import side, U.S. affiliates accountedfor more than percent of U.S. imports ofgoods from four countries: Japan ( percent),Switzerland ( percent), Germany ( percent),and Sweden ( percent) (table , column ).Affiliate imports from these four countries weremainly by affiliates with ’s in the countries(table , column ). In addition, most of theseimports were imports from the affiliates’ foreignparent groups: The share of U.S. imports ac-counted for by intrafirm imports of U.S. affiliateswas percent for Japan and slightly more than percent for Switzerland, Germany, and Sweden(table , column ).

Most of the affiliate imports from Japan wereby wholesale trade affiliates of Japanese manufac-turing companies. These affiliates were initiallyset up to market the products of their parentcompanies, but many of them have since devel-oped substantial secondary operations in manu-facturing. Affiliate imports from Germany, Swe-den, and Switzerland were also predominantly byaffiliates of the investing country’s manufacturingcompanies, which include both wholesale tradeaffiliates and manufacturing affiliates.

Consistent with the overall decline in the affil-iate share of U.S. imports, the affiliate shares forSwitzerland, Germany, and Sweden were lower in than in . In contrast, the much higheraffiliate share of U.S. imports from Japan in was unchanged from .

Tables through follow.

August •

Table 21.—Total U.S. Trade in Goods and Trade in Goods by Nonbank U.S. Affiliates by Country of Destination and Origin,1992 and 1997

Exports by country of destination

Millions of dollars Percentage of total U.S. exportsaccounted for by:

Addenda:Percentage of

U.S.-affiliate total andintrafirm exports to

country that areaccounted for by

affiliates with UBO’s inthe countryTotal 1

Exports by nonbank U.S. affiliates

Total exports byaffiliates

Intrafirm exports byaffiliates Total Intrafirm

1992 1997

Total Of which: Intrafirmexports

1992 1997 1992 1997 1997 19971992 1997 1992 1997

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12)

All countries ............... 448,164 689,182 103,925 140,924 48,767 62,815 23.2 20.4 10.9 9.1 .................... ....................

Canada ...................................... 90,594 151,767 11,418 19,884 3,606 7,478 12.6 13.1 4.0 4.9 20.9 35.9

Europe ...................................... 122,617 163,273 24,081 27,669 10,671 13,885 19.6 16.9 8.7 8.5 .................... ....................Belgium and Luxembourg .... 10,047 14,132 1,953 1,689 455 540 19.4 12.0 4.5 3.8 2.1 6.1France ................................... 14,593 15,965 2,235 2,801 972 1,630 15.3 17.5 6.7 10.2 54.0 73.7Germany ................................ 21,249 24,458 3,965 5,727 1,902 3,360 18.7 23.4 9.0 13.7 50.8 74.3Ireland ................................... 2,862 4,642 230 281 53 129 8.0 6.1 1.9 2.8 4.6 10.1Italy ........................................ 8,721 8,995 1,114 2,335 446 1,089 12.8 26.0 5.1 12.1 31.9 67.8Netherlands ........................... 13,752 19,827 1,729 3,206 800 951 12.6 16.2 5.8 4.8 19.4 60.1Spain ..................................... 5,537 5,539 696 739 244 185 12.6 13.3 4.4 3.3 5.3 21.1Sweden ................................. 2,845 3,314 452 1,440 176 928 15.9 43.5 6.2 28.0 75.5 85.3Switzerland ............................ 4,540 8,307 1,450 2,195 835 1,432 31.9 26.4 18.4 17.2 54.4 79.9United Kingdom .................... 22,800 36,425 6,085 5,379 3,072 2,824 26.7 14.8 13.5 7.8 41.2 45.4Other ..................................... 15,671 21,669 4,172 1,877 1,716 817 26.6 8.7 11.0 3.8 .................... ....................

Latin America and OtherWestern Hemisphere .......... 75,801 134,416 8,852 15,371 1,640 4,852 11.7 11.4 2.2 3.6 .................... ....................Brazil ..................................... 5,751 15,915 1,307 3,402 491 1,673 22.7 21.4 8.5 10.5 25.5 51.9Mexico ................................... 40,592 71,388 4,075 7,200 591 1,688 10.0 10.1 1.5 2.4 4.6 19.0Venezuela ............................. 5,444 6,602 785 617 68 162 14.4 9.3 1.2 2.5 3.1 11.7Other ..................................... 24,014 40,511 2,685 4,152 490 1,329 11.2 10.2 2.0 3.3 .................... ....................

Africa ......................................... 9,907 11,390 1,830 1,471 376 289 18.5 12.9 3.8 2.5 .................... ....................

Middle East .............................. 16,873 20,928 2,082 1,480 492 440 12.3 7.1 2.9 2.1 .................... ....................Israel ...................................... 4,077 5,995 389 565 80 166 9.5 9.4 2.0 2.8 26.9 91.6Saudi Arabia ......................... 7,167 8,438 1,025 604 302 171 14.3 7.2 4.2 2.0 B EOther ..................................... 5,629 6,495 668 311 110 103 11.9 4.8 2.0 1.6 .................... ....................

Asia and Pacific ...................... 132,071 207,069 52,790 57,355 31,421 35,265 40.0 27.7 23.8 17.0 .................... ....................Australia ................................ 8,876 12,063 1,109 1,495 274 749 12.5 12.4 3.1 6.2 18.3 27.0China ..................................... 7,418 12,862 3,078 3,364 1,308 1,410 41.5 26.2 17.6 11.0 B EHong Kong ............................ 9,077 15,117 1,296 1,877 612 711 14.3 12.4 6.7 4.7 1.4 3.1India ....................................... 1,917 3,608 529 755 60 147 27.6 20.9 3.1 4.1 B EIndonesia ............................... 2,779 4,522 652 984 142 179 23.5 21.8 5.1 4.0 .3 1.7Japan ..................................... 47,813 65,549 34,006 33,991 25,933 25,778 71.1 51.9 54.2 39.3 83.4 95.5Korea, Republic of ................ 14,639 25,046 5,209 7,598 1,339 3,641 35.6 30.3 9.1 14.5 56.1 92.9Malaysia ................................ 4,363 10,780 358 420 113 123 8.2 3.9 2.6 1.1 8.3 28.5Philippines ............................. 2,759 7,417 534 394 66 148 19.4 5.3 2.4 2.0 .3 .7Singapore .............................. 9,626 17,696 1,628 2,078 624 946 16.9 11.7 6.5 5.3 .9 1.9Taiwan ................................... 15,250 20,366 3,211 3,259 738 962 21.1 16.0 4.8 4.7 8.4 28.0Thailand ................................. 3,989 7,349 830 806 155 405 20.8 11.0 3.9 5.5 .2 .5Other ..................................... 3,565 4,694 350 334 57 66 9.8 7.1 1.6 1.4 .................... ....................

Unallocated .............................. ............... ............... 2,872 17,694 562 607 ............... ............... ............... ............... .................... ....................

See footnote and notes at the end of the table.

• August

Table 21.—Total U.S. Trade in Goods and Trade in Goods by Nonbank U.S. Affiliates by Country of Destination and Origin,1992 and 1997—Continued

Imports by country of origin

Millions of dollars Percentage of total U.S. tradeaccounted for by:

Addenda:Percentage of

U.S.-affiliate total andintrafirm imports from

country that areaccounted for by

affiliates with UBO’s inthe countryTotal 1

Imports by nonbank U.S. affiliates

Total imports byaffiliates

Intrafirm imports byaffiliates Total Intrafirm

1992 1997

Total Of which: Intrafirmimports

1992 1997 1992 1997 1997 19971992 1997 1992 1997

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12)

All countries ............... 532,665 870,671 184,464 261,482 137,799 195,495 34.6 30.0 25.9 22.5 .................... ....................

Canada ...................................... 98,630 168,201 14,031 22,773 9,448 15,827 14.2 13.5 9.6 9.4 53.0 71.1

Europe ...................................... 112,707 181,440 47,953 65,942 39,259 57,850 42.5 36.3 34.8 31.9 .................... ....................Belgium and Luxembourg .... 4,703 8,151 2,119 2,417 1,767 2,248 45.1 29.7 37.6 27.6 16.0 16.9France ................................... 14,797 20,636 5,146 6,260 3,888 5,538 34.8 30.3 26.3 26.8 80.3 86.8Germany ................................ 28,820 43,122 16,984 23,892 14,880 22,044 58.9 55.4 51.6 51.1 90.3 93.9Ireland ................................... 2,262 5,867 349 529 202 409 15.4 9.0 8.9 7.0 B CItaly ........................................ 12,314 19,408 2,147 4,180 1,291 3,164 17.4 21.5 10.5 16.3 66.6 85.0Netherlands ........................... 5,300 7,293 2,922 3,259 2,530 2,953 55.1 44.7 47.7 40.5 83.5 89.5Spain ..................................... 3,002 4,606 337 751 206 637 11.2 16.3 6.9 13.8 39.4 46.5Sweden ................................. 4,716 7,299 3,160 3,955 2,928 3,701 67.0 54.2 62.1 50.7 86.8 92.2Switzerland ............................ 5,645 8,405 4,547 5,129 3,999 4,471 80.5 61.0 70.8 53.2 78.4 87.7United Kingdom .................... 20,093 32,659 6,755 10,722 5,514 9,008 33.6 32.8 27.4 27.6 66.4 75.1Other ..................................... 11,055 23,994 3,487 4,848 2,054 3,677 31.5 20.2 18.6 15.3 .................... ....................

Latin America and OtherWestern Hemisphere .......... 68,755 139,644 14,589 21,510 6,032 10,463 21.2 15.4 8.8 7.5 .................... ....................Brazil ..................................... 7,609 9,626 2,038 2,158 1,040 1,359 26.8 22.4 13.7 14.1 45.6 72.4Mexico ................................... 35,211 85,938 4,831 11,351 1,470 5,076 13.7 13.2 4.2 5.9 14.2 22.3Venezuela ............................. 8,181 13,477 4,380 3,932 3,102 2,690 53.5 29.2 37.9 20.0 E FOther ..................................... 17,754 30,603 3,340 4,069 420 1,338 18.8 13.3 2.4 4.4 .................... ....................

Africa ......................................... 14,346 19,925 4,069 2,658 966 499 28.4 13.3 6.7 2.5 .................... ....................

Middle East .............................. 15,726 20,403 4,250 4,894 3,750 4,529 27.0 24.0 23.8 22.2 .................... ....................Israel ...................................... 3,815 7,326 489 550 403 499 12.8 7.5 10.6 6.8 90.7 100.0Saudi Arabia ......................... 10,371 9,365 (D) (D) (D) (D) (D) C (D) C F FOther ..................................... 1,540 3,712 (D) (D) (D) (D) (D) A (D) A .................... ....................

Asia and Pacific ...................... 222,501 341,059 97,875 129,824 77,617 105,606 44.0 38.1 34.9 31.0 .................... ....................Australia ................................ 3,688 4,602 1,034 1,030 677 781 28.0 22.4 18.4 17.0 67.9 86.3China ..................................... 25,728 62,558 1,503 2,342 502 751 5.8 3.7 2.0 1.2 4.5 13.8Hong Kong ............................ 9,793 10,288 2,906 4,533 1,342 2,646 29.7 44.1 13.7 25.7 13.9 20.0India ....................................... 3,780 7,322 141 177 20 22 3.7 2.4 .5 .3 4.0 31.8Indonesia ............................... 4,529 9,188 634 1,400 119 609 14.0 15.2 2.6 6.6 1.0 AJapan ..................................... 97,414 121,663 77,440 97,670 67,456 85,606 79.5 80.3 69.2 70.4 98.1 99.5Korea, Republic of ................ 16,682 23,173 5,802 10,651 3,497 7,854 34.8 46.0 21.0 33.9 81.3 95.8Malaysia ................................ 8,294 18,027 1,262 1,676 520 623 15.2 9.3 6.3 3.5 .4 1.1Philippines ............................. 4,355 10,445 575 967 274 426 13.2 9.3 6.3 4.1 A ASingapore .............................. 11,313 20,075 2,396 3,174 1,550 2,117 21.2 15.8 13.7 10.5 10.7 16.1Taiwan ................................... 24,596 32,629 2,603 4,250 1,104 3,116 10.6 13.0 4.5 9.5 47.2 63.9Thailand ................................. 7,529 12,602 1,193 1,301 313 585 15.8 10.3 4.2 4.6 A AOther ..................................... 4,800 8,487 386 653 243 470 8.0 7.7 5.1 5.5 .................... ....................

Unallocated .............................. ............... ............... 1,696 13,882 727 719 ............... ............... ............... ............... .................... ....................

D Suppressed to avoid the disclosure of data of individual companies.1. Data are from the Bureau of the Census.NOTES.—The countries shown in this table are the 28 U.S. trading partners for which the sum

of total U.S. exports and total U.S. imports was at least $10 billion in 1997.Size ranges are given in the percentage cells for 1997 that are suppressed; these ranges are

A—0.01 to 19.9; B—20.0 to 39.9; C—40.0 to 59.9; E—60.0 to 79.9; F—80.0 to 100.

August •

Table 22.1.—Selected Data of Nonbank U.S. Affiliates by SIC-Based Industry of Affiliate, 1996

Millions of dollars

Thousandsof employees

Millions of dollars

Grossproduct Sales Net income

Compensa-tion of

employeesTotal assets

Grossproperty,

plant, andequipment

U.S. exportsof goods

shipped byaffiliates

U.S. importsof goods

shipped toaffiliates

All industries ................................................................... 358,085 1,667,619 24,379 220,637 5,105.0 2,681,746 825,695 140,886 268,673

Petroleum ...................................................................................... 33,007 157,991 5,401 6,661 113.3 117,331 120,776 9,954 22,332Petroleum and coal products manufacturing ............................ 23,099 74,938 3,615 4,105 68.0 70,570 90,092 2,666 14,398Other .......................................................................................... 9,908 83,053 1,787 2,556 45.2 46,760 30,685 7,288 7,935

Manufacturing ............................................................................... 166,558 586,995 8,096 110,587 2,291.5 612,183 303,917 62,297 83,887

Food and kindred products ....................................................... 12,579 53,992 3,425 7,182 214.0 63,070 22,826 3,066 3,452Beverages .............................................................................. 2,592 7,888 3,426 1,126 22.3 21,343 3,733 296 868Other ...................................................................................... 9,987 46,104 –1 6,056 191.8 41,727 19,093 2,770 2,584

Chemicals and allied products .................................................. 43,771 140,220 878 25,624 421.1 187,468 96,214 14,813 15,001Industrial chemicals and synthetics ...................................... 17,508 52,392 –2,188 8,894 151.0 69,096 53,112 7,522 5,732Drugs ..................................................................................... 16,051 49,679 1,754 10,485 153.2 79,440 25,396 4,336 6,538Soap, cleaners, and toilet goods .......................................... 5,575 21,039 583 3,447 67.4 20,539 8,177 988 552Other ...................................................................................... 4,638 17,111 730 2,798 49.5 18,392 9,530 1,967 2,179

Primary and fabricated metals .................................................. 18,302 68,688 1,411 12,335 248.3 65,232 38,258 4,792 8,379Primary metal industries ....................................................... 9,204 39,278 990 5,588 101.4 33,644 25,056 2,493 5,431

Ferrous .............................................................................. 5,405 21,357 420 3,347 53.8 21,178 17,083 849 2,884Nonferrous ......................................................................... 3,798 17,921 570 2,241 47.5 12,467 7,974 1,644 2,547

Fabricated metal products .................................................... 9,098 29,410 421 6,747 147.0 31,588 13,202 2,299 2,948

Machinery ................................................................................... 34,513 135,087 –573 27,108 557.9 103,224 45,030 22,687 31,227Industrial machinery and equipment .................................... 14,578 60,478 –254 11,583 246.4 43,802 17,069 8,872 13,575

Computer and office equipment ....................................... 1,178 15,360 –1,175 1,781 37.2 8,679 2,137 1,313 4,899Other ................................................................................. 13,400 45,119 921 9,802 209.2 35,122 14,933 7,558 8,676

Electronic and other electric equipment ............................... 19,934 74,609 –320 15,525 311.5 59,422 27,961 13,815 17,652Audio, video, and communications equipment ................ 6,521 26,796 247 4,686 92.2 17,663 6,961 6,424 8,134Electronic components and accessories .......................... 3,075 11,531 –285 2,166 48.9 12,008 7,132 1,890 3,341Other ................................................................................. 10,339 36,282 –281 8,673 170.4 29,751 13,868 5,501 6,178

Other manufacturing .................................................................. 57,393 189,008 2,954 38,337 850.0 193,189 101,587 16,939 25,828Textile products and apparel ................................................ 3,769 10,236 98 2,633 86.5 8,912 6,358 577 743Lumber, wood, furniture, and fixtures .................................. 1,121 4,756 535 731 24.3 6,898 1,949 318 311Paper and allied products ..................................................... 5,893 17,397 373 3,480 64.7 19,205 15,852 1,775 1,454Printing and publishing ......................................................... 9,260 23,278 19 6,650 137.8 41,335 9,080 538 387

Newspapers ...................................................................... 328 713 35 250 9.3 (D) 378 0 (D)Other ................................................................................. 8,932 22,565 –17 6,400 128.5 (D) 8,703 538 (D)

Rubber products .................................................................... 4,904 13,873 100 3,720 77.4 12,258 9,313 1,513 2,522Miscellaneous plastics products ........................................... 2,829 9,453 222 1,761 46.3 9,671 6,912 568 385Stone, clay, and glass products ........................................... 9,822 25,711 597 6,008 125.6 30,669 23,636 961 1,385Transportation equipment ..................................................... 9,374 58,672 187 7,249 156.6 38,225 19,308 5,625 16,224

Motor vehicles and equipment ......................................... 7,058 51,592 –99 5,516 115.7 30,116 17,163 4,674 15,586Other transportation equipment ........................................ 2,316 7,080 285 1,733 40.9 8,109 2,145 950 639

Instruments and related products ......................................... 6,536 17,197 576 4,735 100.1 18,526 5,929 3,228 1,700Other ...................................................................................... 3,885 8,434 249 1,371 30.9 7,491 3,249 1,837 717

Wholesale trade ............................................................................ 41,714 480,859 1,548 24,666 490.9 241,873 88,942 63,055 156,350Motor vehicles and equipment .................................................. 9,697 109,409 453 4,161 70.9 82,595 46,591 4,240 47,803Professional and commercial equipment and supplies ............ 4,003 34,417 –993 3,326 67.8 18,705 5,527 2,001 15,724Metals and minerals, except petroleum .................................... 2,151 51,570 369 1,133 19.4 22,020 4,094 11,171 10,977Electrical goods ......................................................................... 8,503 69,844 189 5,449 105.7 38,018 12,432 6,129 39,605Machinery, equipment, and supplies ........................................ 3,505 45,043 444 2,091 41.1 21,691 3,475 9,604 14,260Other durable goods ................................................................. 3,285 59,015 –387 2,599 58.0 14,881 4,629 2,895 7,206Groceries and related products ................................................ 2,073 32,420 –69 1,565 40.9 9,594 2,473 6,652 5,797Farm-product raw materials ...................................................... 1,083 34,763 226 654 18.2 8,720 2,169 16,180 2,942Other nondurable goods ........................................................... 7,416 44,378 1,316 3,688 68.7 25,648 7,552 4,185 12,037

Retail trade ................................................................................... 24,770 96,525 305 15,290 811.0 52,271 32,520 2,036 4,058General merchandise stores ..................................................... 641 2,108 13 390 22.8 2,170 762 28 155Food stores ................................................................................ 14,661 61,350 940 8,362 443.7 27,239 21,059 6 342Apparel and accessory stores .................................................. 2,446 8,906 –69 1,458 83.5 5,698 3,446 19 1,330Other .......................................................................................... 7,022 24,161 –580 5,080 261.1 17,165 7,253 1,983 2,231

Finance, except depository institutions ................................... 6,277 58,440 1,049 8,256 49.0 709,163 6,448 13 21

Insurance ....................................................................................... 11,414 90,784 5,667 9,241 153.1 579,539 28,761 0 0

Real estate .................................................................................... 6,101 15,470 –1,722 1,064 26.0 103,155 92,203 14 1

Services ......................................................................................... 26,230 64,036 –1,787 20,769 681.1 110,951 55,643 729 1,130Hotels and other lodging places ............................................... 4,928 9,363 –289 2,640 118.6 31,729 26,838 (*) 5Business services ...................................................................... 10,882 24,352 –1,235 9,696 310.2 30,556 11,818 401 748

Computer and data processing services .............................. 2,682 8,736 –1,033 2,868 39.9 11,258 3,853 355 502Other business services ....................................................... 8,201 15,616 –203 6,828 270.3 19,299 7,965 46 246

Motion pictures, including television tape and film .................. 1,715 7,621 140 1,188 40.2 19,001 3,527 41 (D)Engineering, architectural, and surveying services .................. 2,143 6,457 –2 1,992 31.6 3,420 1,012 165 131Accounting, research, management, and related services ...... 1,390 4,285 –29 1,231 23.2 5,311 2,318 26 17Health services .......................................................................... 2,802 6,145 –320 2,393 87.9 8,832 2,640 (D) (D)Other services ............................................................................ 2,371 5,813 –52 1,629 69.5 12,102 7,489 (D) 77

Other industries ........................................................................... 42,014 116,518 5,822 24,105 489.1 155,280 96,485 2,789 893Agriculture, forestry, and fishing ............................................... 779 2,343 –8 525 16.4 5,284 4,019 439 143Mining ......................................................................................... 5,475 12,035 703 2,660 41.7 28,508 23,792 2,121 327

Coal ....................................................................................... 1,828 3,740 127 946 13.2 5,412 6,533 (D) 2Other ...................................................................................... 3,647 8,294 576 1,714 28.5 23,096 17,258 (D) 324

Construction ............................................................................... 3,552 19,485 –315 3,435 70.1 11,970 4,940 153 81Transportation ............................................................................ 13,524 35,182 1,319 10,328 223.7 31,771 12,659 39 113Communication and public utilities ........................................... 18,685 47,474 4,123 7,157 137.3 77,747 51,076 37 229

* Less than $500,000.D Suppressed to avoid disclosure of data of individual companies.NOTE.—Estimates for 1996 are revised.

• August

Table 22.2.—Selected Data of Nonbank U.S. Affiliates by SIC-Based Industry of Affiliate, 1997

Millions of dollars

Thousandsof employees

Millions of dollars

Grossproduct Sales Net income

Compensa-tion of

employeesTotal assets

Grossproperty,

plant, andequipment

U.S. exportsof goods

shipped byaffiliates

U.S. importsof goods

shipped toaffiliates

All industries ................................................................... 384,883 1,717,240 42,547 230,337 5,164.3 3,034,404 866,197 140,924 261,482

Petroleum ...................................................................................... 35,220 157,770 6,527 6,730 105.0 123,753 118,095 7,797 19,547Petroleum and coal products manufacturing ............................ 23,449 67,323 4,464 4,270 58.9 71,444 83,963 3,045 11,579Other .......................................................................................... 11,772 90,447 2,063 2,460 46.1 52,309 34,132 4,752 7,969

Manufacturing ............................................................................... 172,409 623,313 14,268 112,578 2,271.0 648,564 317,297 67,719 88,085

Food and kindred products ....................................................... 14,166 54,985 675 7,700 172.4 66,600 23,273 2,985 3,482Beverages .............................................................................. 3,377 8,920 536 1,334 22.2 23,440 4,069 394 959Other ...................................................................................... 10,789 46,065 140 6,366 150.2 43,159 19,204 2,591 2,523

Chemicals and allied products .................................................. 41,197 143,236 4,359 25,277 393.1 191,541 94,052 15,492 16,346Industrial chemicals and synthetics ...................................... 14,867 53,234 1,290 8,308 132.4 65,798 49,164 7,994 5,739Drugs ..................................................................................... 16,110 49,425 1,311 10,608 143.5 76,959 24,766 4,056 7,725Soap, cleaners, and toilet goods .......................................... 4,735 19,992 1,126 3,172 56.8 20,759 7,366 890 495Other ...................................................................................... 5,485 20,585 632 3,189 60.4 28,025 12,755 2,551 2,387

Primary and fabricated metals .................................................. 17,751 69,527 2,074 11,622 236.5 70,431 40,370 5,162 8,814Primary metal industries ....................................................... 9,255 41,990 938 5,701 101.7 35,578 27,828 3,415 6,594

Ferrous .............................................................................. 5,422 22,903 475 3,384 56.6 22,695 18,914 1,047 3,416Nonferrous ......................................................................... 3,833 19,087 463 2,317 45.1 12,883 8,914 2,367 3,178

Fabricated metal products .................................................... 8,496 27,536 1,136 5,921 134.8 34,852 12,543 1,747 2,220

Machinery ................................................................................... 38,233 154,085 1,465 28,876 606.5 122,759 51,273 26,038 32,954Industrial machinery and equipment .................................... 16,915 69,299 157 12,944 283.2 53,347 20,049 10,822 11,486

Computer and office equipment ....................................... 960 15,665 –1,332 1,653 33.5 8,583 2,080 1,525 2,760Other ................................................................................. 15,955 53,634 1,489 11,291 249.6 44,764 17,969 9,297 8,726

Electronic and other electric equipment ............................... 21,318 84,786 1,308 15,932 323.4 69,412 31,224 15,216 21,467Audio, video, and communications equipment ................ 6,392 28,557 517 4,491 85.8 21,507 7,189 6,082 8,367Electronic components and accessories .......................... 5,537 24,169 264 4,021 76.6 19,446 11,942 4,121 9,522Other ................................................................................. 9,389 32,060 526 7,420 161.0 28,459 12,093 5,013 3,578

Other manufacturing .................................................................. 61,061 201,480 5,695 39,103 862.4 197,233 108,330 18,042 26,490Textile products and apparel ................................................ 3,483 9,674 227 2,417 78.2 8,606 5,968 525 742Lumber, wood, furniture, and fixtures .................................. 1,010 4,290 148 681 22.8 2,786 1,562 296 306Paper and allied products ..................................................... 5,106 16,600 131 3,350 61.3 19,095 16,134 1,719 1,082Printing and publishing ......................................................... 9,753 26,836 183 7,004 141.0 41,903 9,598 918 501

Newspapers ...................................................................... 382 781 98 277 9.7 (D) 417 0 (D)Other ................................................................................. 9,371 26,055 85 6,727 131.3 (D) 9,181 918 (D)

Rubber products .................................................................... 5,576 15,455 289 4,009 84.7 12,573 10,394 1,677 2,696Miscellaneous plastics products ........................................... 2,547 9,436 –26 1,614 42.8 9,383 6,602 892 952Stone, clay, and glass products ........................................... 12,067 28,876 2,226 6,535 133.2 34,369 26,686 950 1,619Transportation equipment ..................................................... 11,273 63,964 1,690 7,421 178.0 43,027 22,034 6,463 16,140

Motor vehicles and equipment ......................................... 9,054 56,814 1,510 5,808 139.0 36,827 20,123 5,211 15,449Other transportation equipment ........................................ 2,219 7,149 180 1,613 39.0 6,199 1,911 1,252 692

Instruments and related products ......................................... 6,483 17,586 643 4,698 90.3 17,888 6,055 2,904 1,569Other ...................................................................................... 3,763 8,763 185 1,374 30.3 7,604 3,297 1,698 883

Wholesale trade ............................................................................ 45,776 449,847 3,439 25,829 522.5 266,063 95,565 59,050 148,214Motor vehicles and equipment .................................................. 11,841 117,028 1,549 4,765 88.1 91,878 50,604 4,708 49,479Professional and commercial equipment and supplies ............ 4,268 31,219 –624 3,367 70.4 20,728 7,023 2,112 14,392Metals and minerals, except petroleum .................................... 1,848 37,709 343 964 16.4 18,004 3,495 6,135 8,908Electrical goods ......................................................................... 8,216 66,871 238 5,536 103.2 43,061 12,121 6,056 31,919Machinery, equipment, and supplies ........................................ 3,205 23,653 182 2,019 37.7 17,072 2,946 5,963 7,541Other durable goods ................................................................. 3,713 38,208 –461 2,638 56.5 16,589 4,615 4,083 12,223Groceries and related products ................................................ 2,882 43,931 78 1,882 53.5 15,092 3,346 9,210 7,470Farm-product raw materials ...................................................... 1,517 34,067 244 736 21.2 10,679 2,434 13,866 2,831Other nondurable goods ........................................................... 8,287 57,162 1,889 3,921 75.5 32,961 8,982 6,917 13,450

Retail trade ................................................................................... 28,313 102,531 1,213 17,281 839.2 54,723 34,558 1,952 3,679General merchandise stores ..................................................... 178 807 –15 131 7.0 605 319 14 (D)Food stores ................................................................................ 17,776 67,952 1,176 9,878 476.7 28,733 23,116 38 (D)Apparel and accessory stores .................................................. 2,469 8,846 8 1,467 79.3 6,025 3,750 23 1,191Other .......................................................................................... 7,890 24,926 44 5,805 276.1 19,359 7,373 1,878 2,022

Finance, except depository institutions ................................... 9,669 74,409 4,124 10,317 60.3 847,626 7,923 (D) (D)

Insurance ....................................................................................... 16,629 102,180 9,071 11,065 165.0 704,133 30,248 0 0

Real estate .................................................................................... 7,318 16,857 35 1,141 24.7 104,334 88,473 (D) 2

Services ......................................................................................... 29,278 66,435 159 22,610 682.9 113,797 56,367 622 (D)Hotels and other lodging places ............................................... 4,962 8,750 478 2,536 113.5 28,207 26,171 (*) 5Business services ...................................................................... 14,123 27,695 –222 11,965 312.1 33,060 13,076 (D) 507

Computer and data processing services .............................. 4,038 10,048 –351 3,227 41.7 13,188 4,011 216 428Other business services ....................................................... 10,084 17,647 129 8,738 270.5 19,872 9,064 (D) 80

Motion pictures, including television tape and film .................. 1,671 8,324 107 1,261 39.5 19,561 3,759 104 (D)Engineering, architectural, and surveying services .................. 1,296 3,985 36 1,166 20.9 2,606 840 146 137Accounting, research, management, and related services ...... 1,546 4,606 140 1,260 27.9 5,408 2,111 33 (D)Health services .......................................................................... 3,716 7,875 –256 2,885 104.1 12,531 3,566 (D) (D)Other services ............................................................................ 1,965 5,199 –125 1,537 64.8 12,424 6,843 26 53

Other industries ........................................................................... 40,270 123,898 3,712 22,786 493.7 171,411 117,671 3,702 934Agriculture, forestry, and fishing ............................................... 732 2,361 165 435 13.8 4,765 2,990 263 102Mining ......................................................................................... 5,952 12,634 508 2,787 43.1 31,427 26,899 3,075 205

Coal ....................................................................................... 2,474 5,229 279 1,280 18.5 9,651 10,762 667 2Other ...................................................................................... 3,478 7,405 229 1,507 24.6 21,776 16,136 2,408 203

Construction ............................................................................... 3,955 21,167 –341 3,704 71.9 11,787 4,942 201 40Transportation ............................................................................ 11,499 33,095 1,301 8,047 199.4 30,197 20,938 154 377Communication and public utilities ........................................... 18,132 54,641 2,079 7,814 165.5 93,235 61,903 9 209

* Less than $500,000.D Suppressed to avoid disclosure of data of individual companies.NOTE.—Estimates for 1997 are preliminary.

August •

Table 22.3.—Selected Data of Nonbank U.S. Affiliates by NAICS-Based Industry of Affiliate, 1997

Millions of dollars

Thousandsof

employees

Millions of dollars

Grossproduct Sales Net income

Compensa-tion of

employeesTotal assets

Gross property, plant, andequipment Expendi-

tures fornew plant

andequipment

Researchand

develop-ment

funded byaffiliates

U.S. exportsof goods

shipped byaffiliates

U.S. importsof goods

shipped toaffiliatesTotal

Of which:

Commercialproperty

All industries ................................................................... 384,883 1,717,240 42,547 230,337 5,164.3 3,034,404 866,197 172,177 100,756 19,690 140,924 261,482

Manufacturing ............................................................................... 188,477 667,576 18,826 111,373 2,227.0 680,260 394,613 16,975 38,417 15,655 70,053 99,304

Food ........................................................................................... 10,953 47,082 183 6,438 152.7 43,894 19,645 1,615 1,422 253 2,620 2,675Beverages and tobacco products ............................................. 5,907 13,258 605 1,849 31.2 27,202 5,652 311 566 66 1,604 1,138Textiles, apparel, and leather products .................................... 3,479 9,802 207 2,435 79.1 8,739 5,995 452 455 54 536 776Wood products ........................................................................... 580 2,059 81 374 10.6 1,645 1,130 31 98 5 216 253Paper .......................................................................................... 5,048 16,607 63 3,353 61.6 19,154 16,155 (D) 941 95 1,746 1,062Printing and related support activities ...................................... 2,803 6,580 189 1,993 42.6 7,938 4,092 92 385 27 163 419Petroleum and coal products .................................................... 23,421 67,117 4,463 4,262 58.8 71,235 83,718 4,829 5,163 285 3,044 11,576

Chemicals .................................................................................. 40,906 141,744 4,280 25,114 389.4 190,326 93,245 5,415 9,719 7,287 15,259 16,019Basic chemicals ..................................................................... 9,285 33,259 549 5,023 74.3 40,525 33,768 (D) 3,717 628 4,815 3,647Resins and synthetic rubber, fibers, and filaments ............. 5,008 17,829 671 2,908 49.6 23,129 13,995 52 1,224 386 2,806 1,732Pharmaceuticals and medicines ........................................... 16,094 49,416 1,297 10,608 143.5 76,997 24,758 1,383 2,646 5,686 4,056 7,725Soap, cleaning compounds, and toilet preparations ............ 4,735 19,992 1,126 3,172 56.8 20,759 7,366 (D) 743 306 890 495Other ...................................................................................... 5,784 21,248 637 3,405 65.3 28,915 13,358 620 1,388 282 2,691 2,419

Plastics and rubber products .................................................... 7,991 24,372 260 5,522 124.3 21,596 16,833 659 1,532 316 2,518 3,622Nonmetallic mineral products .................................................... 12,044 28,795 2,225 6,516 132.8 34,327 26,669 601 2,905 217 942 1,612Primary and fabricated metals .................................................. 16,510 65,075 1,744 10,805 219.4 67,516 39,857 544 4,622 (D) 5,133 8,329

Primary metals ...................................................................... 8,600 39,429 788 5,441 95.6 33,853 26,619 335 3,388 159 3,410 6,553Fabricated metal products .................................................... 7,910 25,646 956 5,364 123.8 33,663 13,237 209 1,234 (D) 1,723 1,776

Machinery ................................................................................... 16,607 56,680 1,390 12,115 260.8 47,246 17,874 389 1,842 991 10,357 8,267Agriculture, construction, and mining machinery ................. 4,166 16,677 319 3,006 61.7 14,098 3,785 83 367 161 2,438 4,214Industrial machinery .............................................................. 1,665 5,697 66 1,259 23.9 4,831 1,975 87 200 116 1,351 871Other ...................................................................................... 10,776 34,306 1,005 7,850 175.2 28,317 12,114 220 1,275 715 6,568 3,183

Computers and electronic products .......................................... 15,658 73,413 –257 12,126 239.6 53,182 23,654 565 3,960 3,743 13,092 20,612Computers and peripheral equipment .................................. 1,022 16,490 –1,387 1,707 35.7 9,573 2,411 127 274 250 1,615 2,884Communications equipment .................................................. 5,889 24,601 623 4,013 75.7 16,150 6,031 80 854 1,989 4,506 6,548Audio and video equipment .................................................. 1,054 6,538 –149 810 16.3 3,047 1,737 2 248 233 (D) 4,201Semiconductors and other electronic components .............. 4,512 17,668 314 3,288 64.9 15,888 9,975 156 2,025 633 2,737 6,361Navigational, measuring, and other instruments .................. 2,542 6,471 241 1,905 35.8 6,995 2,346 130 239 614 1,518 513Magnetic and optical media .................................................. 639 1,645 101 403 11.2 1,529 1,154 69 321 24 (D) 105

Electrical equipment, appliances, and components ................. 7,537 26,203 631 5,776 129.5 22,574 9,851 164 1,073 810 3,430 3,421Transportation equipment .......................................................... 13,554 72,607 2,060 8,942 207.9 49,211 24,902 945 3,137 (D) 7,631 18,203

Motor vehicles, bodies and trailers, and parts .................... 11,372 65,706 1,883 7,349 170.0 43,040 22,912 866 2,924 572 6,508 17,507Other ...................................................................................... 2,182 6,901 176 1,593 37.9 6,170 1,990 79 213 (D) 1,123 697

Furniture and related products .................................................. 654 2,658 109 446 16.4 1,469 560 33 85 11 105 66Miscellaneous manufacturing .................................................... 4,824 13,525 592 3,307 70.2 13,007 4,782 (D) 511 467 1,659 1,252

Wholesale trade ............................................................................ 51,856 530,141 3,889 26,918 538.5 293,144 104,670 8,798 25,410 1,589 63,231 155,716Motor vehicles and motor vehicle parts and supplies ............. 11,879 117,195 1,543 4,780 88.0 92,007 50,610 3,281 17,721 325 4,714 49,491Professional and commercial equipment and supplies ............ 4,245 31,133 –626 3,351 70.1 20,702 7,000 327 2,025 375 2,096 14,338Electrical goods ......................................................................... 8,126 65,714 142 5,575 102.9 42,617 12,122 1,671 1,942 217 6,089 32,041Other durable goods .................................................................. 8,843 92,363 106 5,602 111.3 48,176 11,051 1,564 1,163 90 14,003 27,695Petroleum and petroleum products ........................................... 6,082 88,745 520 1,061 16.0 31,061 9,144 409 643 27 6,405 8,436Other nondurable goods ............................................................ 12,681 134,992 2,205 6,549 150.3 58,581 14,743 1,545 1,917 555 29,924 23,716

Retail trade .................................................................................... 25,009 96,624 1,197 14,405 688.7 49,802 32,067 17,191 3,861 3 1,951 3,973Food and beverage stores ........................................................ 17,720 67,720 1,163 9,851 475.0 28,694 23,078 13,249 2,677 (*) 13 364Other .......................................................................................... 7,290 28,905 34 4,555 213.7 21,108 8,989 3,942 1,184 3 1,938 3,609

Information .................................................................................... 27,120 80,845 2,445 14,836 293.4 144,497 64,471 3,045 9,623 1,454 888 374Publishing industries .................................................................. 7,348 18,866 338 5,012 95.7 35,384 4,804 299 689 421 (D) 256Motion picture and sound recording industries ........................ 2,542 14,207 28 2,119 43.8 26,945 5,548 1,836 431 7 (D) (D)Broadcasting and telecommunications ...................................... 16,153 45,013 2,004 7,027 142.7 79,899 52,958 832 8,350 (D) 1 (D)

Broadcasting, cable networks, and program distribution ..... 1,421 9,869 –320 948 22.2 24,175 3,501 743 595 2 0 0Telecommunications .............................................................. 14,733 35,144 2,324 6,080 120.5 55,725 49,457 88 7,754 (D) 1 (D)

Information services and data processing services ................. 1,076 2,759 75 678 11.2 2,269 1,161 78 154 (D) 4 0

Finance (except depository institutions) and insurance ........ 26,331 175,822 11,220 21,174 219.8 1,534,492 37,435 10,560 5,779 5 (D) (D)Finance, except depository institutions ..................................... 9,703 73,654 2,153 10,111 54.8 830,670 7,187 1,449 1,270 5 (D) (D)Insurance carriers and related activities ................................... 16,628 102,168 9,067 11,064 165.0 703,822 30,248 9,112 4,509 0 0 0

Real estate and rental and leasing ........................................... 9,084 20,813 204 1,867 47.0 116,679 94,233 80,903 5,057 1 (D) (D)Real estate ................................................................................. 7,290 16,408 36 1,134 25.1 103,890 88,064 80,504 4,282 (*) (D) (*)Rental and leasing (except real estate) ................................... 1,795 4,404 167 734 21.8 12,789 6,169 400 775 1 (D) (D)

Professional, scientific, and technical services ...................... 5,981 15,972 –570 5,783 82.6 17,299 4,323 771 521 620 361 567Architectural, engineering, and related services ...................... 1,358 4,142 –10 1,249 23.2 2,939 929 380 80 20 146 (D)Computer systems design and related services ...................... 1,756 4,815 –629 1,934 24.5 5,140 1,640 230 250 250 181 410Management, scientific, and technical consulting .................... 411 574 109 284 3.3 1,332 106 11 8 1 1 (*)Other .......................................................................................... 2,456 6,441 –41 2,316 31.7 7,887 1,648 150 182 349 32 (D)

Other industries ........................................................................... 51,025 129,448 5,337 33,979 1,067.3 198,229 134,387 33,933 12,088 363 4,332 1,255Agriculture, forestry, fishing, and hunting ................................. 730 2,358 164 432 13.8 4,779 3,009 143 374 58 263 102Mining ......................................................................................... 9,826 19,563 1,446 4,002 65.2 49,123 42,367 408 3,832 210 3,602 458Utilities ........................................................................................ 1,445 8,081 74 487 8.7 10,821 8,133 (D) 398 10 (D) 133Construction ............................................................................... 4,358 23,882 –281 3,998 76.9 13,941 6,426 2,565 1,089 17 201 40Transportation and warehousing ............................................... 11,999 31,676 1,629 7,560 185.5 34,484 29,225 1,483 2,856 24 152 401Management of nonbank companies and enterprises ............. –364 110 1,943 74 1.2 14,112 321 134 27 1 0 0Administration, support, and waste management .................... 8,993 15,562 276 7,655 279.1 12,918 5,701 874 1,001 (D) 3 5Health care and social assistance ............................................ 3,714 7,872 –258 2,885 104.2 12,529 3,571 (D) 412 (D) (D) (D)Accommodation and food services ........................................... 8,577 15,711 492 5,495 270.4 33,761 29,173 22,442 1,495 (*) (*) 5

Accommodation ..................................................................... 4,961 8,755 480 2,533 113.4 28,290 26,207 21,222 1,090 0 (*) 5Food services and drinking places ....................................... 3,616 6,956 12 2,963 157.0 5,471 2,967 1,219 405 (*) 0 0

Miscellaneous services .............................................................. 1,746 4,632 –148 1,390 62.4 11,761 6,460 3,629 605 (*) 21 (D)

* Less than $500,000.D Suppressed to avoid disclosure of data of individual companies.NOTE.—Estimates for 1997 are preliminary.

• August

Table 23.1.—Selected Data of Nonbank U.S. Affiliates by Country of Ultimate Beneficial Owner, 1996

Millions of dollars

Thou-sands ofemploy-

ees

Millions of dollars

Grossproduct Sales Net

income

Com-pensation

ofemploy-

ees

Totalassets

Gross property,plant, andequipment Expendi-

tures fornew plant

andequip-ment

Researchand

develop-ment

fundedby

affiliates

U.S.exports

of goodsshipped

byaffiliates

U.S.imports

of goodsshipped

toaffiliatesTotal

Of which:

Commer-cial

property

All countries ........................................................... 358,085 1,667,619 24,379 220,637 5,105.0 2,681,746 825,695 167,577 90,582 17,984 140,886 268,673

Canada .................................................................................. 32,550 130,222 6,333 20,932 608.9 270,605 76,344 18,582 6,723 1,479 5,920 16,287

Europe .................................................................................. 229,286 917,301 17,908 143,408 3,196.6 1,548,650 455,939 67,148 46,135 12,910 64,347 90,106

Austria ............................................................................... 384 2,493 12 316 7.0 5,285 583 69 62 7 439 560Belgium ............................................................................. 4,661 19,755 669 2,299 103.3 16,454 11,549 2,149 1,469 81 650 1,438Denmark ............................................................................ 2,079 4,961 –123 1,715 71.7 4,419 2,002 116 240 110 527 747Finland ............................................................................... 1,688 10,436 –132 1,397 26.0 6,971 2,559 160 274 115 1,167 1,685France ............................................................................... 34,227 132,435 3,899 20,868 420.2 283,054 76,880 13,409 7,382 1,792 17,838 13,123

Germany ............................................................................ 42,929 176,901 3,467 28,897 626.3 256,995 84,870 14,537 10,896 3,107 12,785 30,237Ireland ............................................................................... 2,527 8,317 140 1,557 37.6 10,164 5,311 161 286 55 331 258Italy .................................................................................... 3,106 15,474 –71 2,224 52.7 21,266 5,812 542 544 139 1,239 3,368Liechtenstein ..................................................................... 153 595 –31 134 2.5 714 529 307 19 2 45 176Luxembourg ...................................................................... 1,582 6,565 24 1,341 27.8 7,231 2,484 916 791 22 223 649Netherlands ....................................................................... 30,078 114,900 2,826 16,038 393.2 183,056 74,610 11,856 5,858 964 4,719 9,266

Norway .............................................................................. 1,452 8,943 73 1,105 19.0 5,157 2,712 374 213 68 615 914Spain ................................................................................. 551 2,184 –23 375 8.2 6,044 2,039 235 218 9 155 332Sweden ............................................................................. 6,409 29,046 327 4,275 87.1 36,204 8,666 1,119 1,145 375 3,826 5,058Switzerland ........................................................................ 20,677 97,937 592 17,243 321.4 278,867 30,702 3,299 3,301 3,367 6,468 7,960United Kingdom ................................................................ 76,602 284,085 6,313 43,436 988.2 424,763 143,905 17,401 13,313 2,684 13,137 13,573Other ................................................................................. 182 2,274 –53 187 4.5 2,004 726 497 124 12 183 760

Latin America and Other Western Hemisphere .............. 12,955 53,844 247 6,493 146.6 60,840 27,323 5,744 2,863 395 5,772 10,589

South and Central America .............................................. 8,408 36,922 –20 3,415 72.9 41,414 16,554 1,723 1,700 91 2,992 9,678Brazil ............................................................................. 328 4,349 168 296 5.0 10,782 1,012 152 128 (*) 1,185 1,216Mexico ........................................................................... 1,862 9,376 –567 1,423 38.3 10,991 3,524 715 341 67 872 2,573Panama ......................................................................... 826 2,292 –18 740 12.9 3,879 1,575 335 63 (D) 506 291Venezuela ..................................................................... 5,089 19,374 378 834 13.0 12,702 9,313 318 1,075 (D) 302 5,068Other ............................................................................. 303 1,531 20 123 3.7 3,060 1,130 202 91 (*) 127 530

Other Western Hemisphere .............................................. 4,547 16,922 267 3,078 73.8 19,426 10,769 4,021 1,164 304 2,780 910Bahamas ....................................................................... 246 746 –42 180 6.8 1,438 934 432 47 (*) 3 6Bermuda ....................................................................... 2,403 11,282 –177 1,534 40.4 10,193 5,466 2,000 581 120 (D) 578Netherlands Antilles ...................................................... 1,319 2,983 462 998 16.5 3,784 2,580 (D) 279 182 (D) (D)United Kingdom Islands, Caribbean ............................ 552 1,756 30 345 9.4 3,740 1,656 (D) 252 2 44 (D)Other ............................................................................. 26 155 –6 21 .7 271 133 85 4 (*) 47 4

Africa ..................................................................................... 2,555 10,876 674 1,250 22.8 11,315 8,932 (D) (D) 88 615 515South Africa ...................................................................... 2,011 10,016 631 1,098 20.6 8,261 (D) 96 446 83 552 (D)Other ................................................................................. 544 860 43 152 2.2 3,053 (D) (D) (D) 5 63 (D)

Middle East .......................................................................... 6,387 24,882 –14 2,430 92.6 29,612 21,947 15,696 1,096 127 625 5,654Israel .................................................................................. 485 2,672 –56 508 9.9 3,074 897 132 85 120 366 748Kuwait ................................................................................ 756 1,581 311 126 4.7 7,435 6,805 6,307 110 (*) 42 25Lebanon ............................................................................ 221 506 1 123 3.1 950 984 473 41 1 68 (*)Saudi Arabia ..................................................................... 3,545 15,012 29 901 27.4 12,294 8,798 5,375 364 5 108 (D)United Arab Emirates ....................................................... 159 346 –2 45 1.1 1,999 2,180 1,827 170 0 35 39Other ................................................................................. 1,222 4,766 –298 727 46.4 3,859 2,282 1,582 326 1 6 (D)

Asia and Pacific .................................................................. 69,190 510,731 –3,448 43,936 994.7 648,351 214,540 59,030 29,118 2,925 62,796 144,263Australia ............................................................................ 5,758 24,352 220 3,508 79.6 46,542 17,292 3,620 1,551 75 1,375 1,575China ................................................................................. 220 1,929 –32 125 2.2 1,028 556 79 76 13 (D) (D)Hong Kong ........................................................................ 1,559 7,082 –153 1,033 40.2 8,179 5,964 4,104 442 5 67 1,641Indonesia ........................................................................... 143 888 –45 124 5.4 791 423 209 42 0 125 32Japan ................................................................................. 58,069 437,069 –1,255 35,952 788.8 557,640 171,936 45,853 24,482 2,166 54,490 126,424Korea, Republic of ............................................................ 644 24,111 –1,505 1,106 25.0 14,088 5,170 759 753 559 3,978 10,801Malaysia ............................................................................ 415 1,457 –36 335 9.6 1,907 889 451 64 16 (D) 37New Zealand ..................................................................... 263 1,594 –47 253 6.3 745 267 21 16 2 30 337Philippines ......................................................................... 39 128 13 18 .7 277 175 81 7 (*) 11 53Singapore .......................................................................... 261 2,012 –327 347 7.8 4,061 2,712 2,161 611 36 109 (D)Taiwan ............................................................................... 1,639 8,950 –94 916 21.4 11,434 7,955 859 997 40 1,019 2,115Other ................................................................................. 181 1,159 –187 218 7.7 1,658 1,199 832 76 12 120 291

United States ....................................................................... 5,161 19,763 2,679 2,188 42.7 112,373 20,669 (D) (D) 60 811 1,259

Addenda:European Union (15) 1 ...................................................... 206,870 808,023 17,307 124,788 2,850.3 1,262,420 421,624 62,950 42,530 9,460 57,036 80,325OPEC 2 .............................................................................. 10230 37,783 773 2,154 52.7 37,855 31,381 14,095 2,057 14 614 9,943

* Less than $500,000.D Suppressed to avoid disclosure of data of individual companies.1. The European Union (15) comprises Austria, Belgium, Denmark, Finland, France, Germany,

Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain, Sweden, and the United King-dom.

2. OPEC is the Organization of Petroleum Exporting Countries. Its members are Algeria, Indo-nesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Ven-ezuela.

NOTE.—Estimates for 1996 are revised.

August •

Table 23.2.—Selected Data of Nonbank U.S. Affiliates by Country of Ultimate Beneficial Owner, 1997

Millions of dollars

Thou-sands ofemploy-

ees

Millions of dollars

Grossproduct Sales Net

income

Com-pensa-tion of

employ-ees

Totalassets

Gross property,plant, andequipment Expendi-

tures fornewplantand

equip-ment

Re-search

anddevelop-

mentfunded

byaffiliates

U.S.exports

of goodsshipped

byaffiliates

U.S.imports

of goodsshipped

toaffiliatesTotal

Ofwhich:

Commer-cial

property

All countries .................................................................... 384,883 1,717,240 42,547 230,337 5,164.3 3,034,404 866,197 172,177 100,756 19,690 140,924 261,482

Canada .......................................................................................... 34,464 139,409 3,693 21,730 601.6 309,080 82,306 22,028 7,763 1,685 7,787 14,356

Europe ........................................................................................... 245,919 940,672 31,107 149,268 3,213.9 1,809,319 469,590 68,898 50,225 13,542 62,392 94,512

Austria ........................................................................................ 399 2,378 45 289 5.9 5,400 712 103 84 (D) 451 475Belgium ...................................................................................... 5,598 23,298 736 2,992 121.2 18,452 12,439 2,202 1,426 93 526 1,625Denmark .................................................................................... 1,194 4,513 96 866 18.7 4,414 2,082 111 313 82 642 688Finland ....................................................................................... 1,917 9,674 230 1,310 25.3 6,947 2,397 67 303 70 1,083 1,879France ........................................................................................ 35,863 135,414 2,959 21,785 411.2 322,270 77,324 15,607 7,376 1,918 14,032 12,936

Germany .................................................................................... 46,171 194,492 5,071 30,510 657.6 302,740 90,168 15,114 13,571 3,282 13,973 32,032Ireland ........................................................................................ 2,544 9,585 86 1,688 39.4 11,187 5,526 227 410 42 337 336Italy ............................................................................................ 3,167 15,995 166 2,078 48.8 20,002 5,828 516 623 154 1,361 3,354Liechtenstein .............................................................................. 201 743 –2 160 2.7 648 411 237 36 4 62 202Luxembourg ............................................................................... 617 4,229 –67 529 13.4 5,973 1,847 946 142 1 183 683Netherlands ................................................................................ 33,750 124,109 5,508 17,217 391.4 260,034 76,824 11,539 7,083 1,002 4,592 10,191

Norway ....................................................................................... 1,858 11,873 57 1,335 33.9 7,572 3,440 494 374 61 805 1,305Spain .......................................................................................... 338 1,800 –31 298 8.1 4,422 1,184 255 198 9 66 363Sweden ...................................................................................... 7,896 31,401 1,153 4,546 97.6 43,501 10,179 1,269 1,159 418 3,449 5,294Switzerland ................................................................................ 25,637 110,077 2,986 20,729 352.1 339,896 30,247 3,775 3,031 3,282 6,233 7,127United Kingdom ......................................................................... 78,550 258,845 12,119 42,768 983.2 454,081 148,335 15,982 14,049 3,102 14,543 15,363Other .......................................................................................... 219 2,246 –4 166 3.5 1,782 646 457 46 (D) 52 659

Latin America and Other Western Hemisphere ...................... 13,545 53,469 2,522 6,455 168.1 59,833 26,662 4,947 2,261 364 5,308 9,622

South and Central America ...................................................... 7,896 33,856 1,956 2,839 57.6 38,098 15,768 1,143 1,033 63 (D) 8,284Brazil ...................................................................................... 312 3,999 237 285 4.5 10,217 1,134 212 130 1 941 1,211Mexico ................................................................................... 1,347 8,145 1,300 984 26.7 8,678 2,358 464 256 46 701 2,579Panama ................................................................................. 696 2,284 –189 717 12.9 3,770 1,221 130 72 (D) (D) 270Venezuela .............................................................................. 5,247 17,879 586 732 9.8 12,204 9,916 223 466 (D) 308 (D)Other ...................................................................................... 294 1,549 21 120 3.7 3,229 1,139 113 110 (*) 73 (D)

Other Western Hemisphere ...................................................... 5,649 19,613 566 3,616 110.6 21,735 10,893 3,804 1,227 301 (D) 1,339Bahamas ............................................................................... 301 (D) (D) 228 7.9 1,398 (D) 608 (D) 0 3 5Bermuda ................................................................................ 3,295 12,631 150 2,231 77.9 12,403 6,206 2,169 637 (D) (D) 696Netherlands Antilles .............................................................. (D) (D) (D) (D) J 3,946 2,585 (D) (D) (D) (D) 261United Kingdom Islands, Caribbean ..................................... (D) 2,448 83 (D) I 3,923 1,108 620 155 4 29 373Other ...................................................................................... 16 64 –3 16 .5 66 (D) (D) 2 0 1 4

Africa ............................................................................................. 2,843 11,222 326 1,328 22.4 11,969 9,489 181 (D) 84 855 634South Africa ............................................................................... 2,208 10,278 262 1,172 20.3 8,185 (D) 91 373 84 (D) 559Other .......................................................................................... 635 944 64 155 2.1 3,783 (D) 90 (D) 0 (D) 75

Middle East ................................................................................... 7,295 25,246 1,151 2,543 92.7 28,841 20,226 13,386 1,379 129 814 5,534Israel .......................................................................................... 417 2,509 –1 425 9.3 3,094 883 279 119 118 467 (D)Kuwait ........................................................................................ 868 1,299 577 112 4.4 6,633 5,383 5,205 87 (*) (D) 17Lebanon ..................................................................................... 193 508 12 111 3.1 965 936 505 41 1 25 (*)Saudi Arabia .............................................................................. 4,263 14,771 655 896 25.9 11,811 8,369 3,982 478 3 (D) (D)United Arab Emirates ................................................................ 156 404 1 47 1.6 2,092 2,266 1,894 354 (*) 65 44Other .......................................................................................... 1,398 5,755 –93 952 48.4 4,245 2,430 1,522 299 7 19 112

Asia and Pacific ........................................................................... 73,667 523,479 918 45,967 1,012.6 687,245 234,502 61,483 34,223 3,803 62,709 135,739Australia ..................................................................................... 5,207 26,132 –101 3,423 80.1 55,514 19,429 4,169 1,515 95 1,410 1,501China .......................................................................................... 238 1,868 36 109 1.6 1,152 501 13 66 9 1,391 126Hong Kong ................................................................................. 1,474 6,265 –32 879 34.5 7,656 5,703 3,950 294 5 81 1,345Indonesia ................................................................................... (D) 1,362 3 (D) I 1,045 539 108 51 7 (D) 30Japan ......................................................................................... 62,345 446,422 2,701 37,938 812.4 582,570 185,085 48,152 29,032 3,195 52,883 120,357Korea, Republic of .................................................................... 655 21,755 –1,130 945 18.4 15,153 5,520 495 1,555 (D) 5,077 9,156Malaysia ..................................................................................... 420 1,425 54 327 9.4 2,023 1,077 517 145 21 182 (D)New Zealand ............................................................................. (D) 2,040 –70 (D) I 1,172 850 8 48 16 (D) 652Philippines .................................................................................. 95 105 50 18 .7 206 144 60 10 0 4 (D)Singapore ................................................................................... 696 4,381 –281 540 9.2 6,403 5,638 2,416 213 22 182 352Taiwan ....................................................................................... 1,717 10,755 –222 1,092 25.5 12,837 8,868 852 1,194 (D) 1,049 2,106Other .......................................................................................... 217 969 –91 188 5.0 1,514 1,150 742 100 (D) 200 84

United States ................................................................................ 7,151 23,742 2,829 3,046 52.9 128,117 23,382 1,252 (D) 83 1,058 1,084

Addenda:European Union (15) 1 .............................................................. 218,084 816,350 28,073 126,918 2,822.3 1,459,846 435,185 64,204 46,763 10,176 55,241 85,261OPEC 2 ...................................................................................... 11,477 36,399 1,934 2,156 52.5 37,166 30,751 11,477 1,856 14 806 8,389

* Less than $500,000.D Suppressed to avoid disclosure of data of individual companies.1. The European Union (15) comprises Austria, Belgium, Denmark, Finland, France, Germany,

Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain, Sweden, and the United King-dom.

2. OPEC is the Organization of Petroleum Exporting Countries. Its members are Algeria, Indo-

nesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Ven-ezuela.

NOTES.—Size ranges are given in employment cells that are suppressed. The size ranges are:A—1 to 499; F—500 to 999; G—1,000 to 2,499; H—2,500 to 4,999; I—5,000 to 9,999; J—10,000to 24,999; K—25,000 to 49,999; L—50,000 to 99,999; M—100,000 or more.

Estimates for 1997 are preliminary.

• August

Table 24.1.—Gross Product of Nonbank U.S. Affiliates, SIC-Based Industry of Affiliate by Country of Ultimate Beneficial Owner, 1996[Millions of dollars]

Allcountries Canada

Europe LatinAmerica

andOther

WesternHemi-sphere

Africa MiddleEast

Asia and Pacific

UnitedStatesTotal

Of which:

Total

Of which:

France Germany Nether-lands

Switzer-land

UnitedKingdom Australia Japan

All industries ................................................................... 358,085 32,550 229,286 34,227 42,929 30,078 20,677 76,602 12,955 2,555 6,387 69,190 5,758 58,069 5,161

Petroleum ...................................................................................... 33,007 1,945 20,750 1,518 51 (D) 231 6,720 6,227 (D) (D) 806 (D) 121 156Petroleum and coal products manufacturing ............................ 23,099 (D) 18,587 (D) 63 (D) (D) (D) (D) 0 (D) (D) (D) 30 (*)Other .......................................................................................... 9,908 (D) 2,163 (D) –12 265 (D) (D) (D) (D) 20 (D) 91 92 156

Manufacturing ............................................................................... 166,558 15,836 114,717 16,056 25,275 7,821 14,162 37,852 2,611 1,209 942 30,233 2,794 24,821 1,010

Food and kindred products ....................................................... 12,579 1,963 8,724 583 133 (D) 2,514 3,933 200 (D) (D) 1,367 (D) 1,026 (D)Beverages .............................................................................. 2,592 (D) 1,054 143 20 (*) 27 (D) 11 0 0 407 0 309 (D)Other ...................................................................................... 9,987 (D) 7,670 440 113 (D) 2,486 (D) 189 (D) (D) 960 (D) 717 25

Chemicals and allied products .................................................. 43,771 423 39,458 4,118 10,880 4,236 7,017 11,533 7 (D) 169 3,460 594 1,737 (D)Industrial chemicals and synthetics ...................................... 17,508 36 14,946 2,022 4,414 1,468 733 5,256 4 0 0 2,522 (D) 926 0Drugs ..................................................................................... 16,051 17 15,475 1,136 4,303 (D) 6,201 3,393 0 0 126 433 39 395 0Soap, cleaners, and toilet goods .......................................... 5,575 (D) 4,916 (D) 1,548 (D) 19 (D) 2 0 0 149 13 135 (D)Other ...................................................................................... 4,638 (D) 4,121 (D) 615 (D) 64 (D) 1 (D) 44 356 (D) 280 (*)

Primary and fabricated metals .................................................. 18,302 2,591 9,038 2,243 2,428 292 164 2,439 765 (D) (D) 5,331 164 4,789 17Primary metal industries ....................................................... 9,204 1,240 2,967 538 857 –3 85 712 (D) (D) 8 4,272 (D) 3,799 3

Ferrous .............................................................................. 5,405 288 1,309 402 251 –3 6 179 (D) (D) 0 3,629 45 3,273 0Nonferrous ......................................................................... 3,798 952 1,658 136 605 0 79 534 (D) (D) 8 642 (D) 526 3

Fabricated metal products .................................................... 9,098 1,351 6,071 1,705 1,571 295 79 1,727 (D) 0 (D) 1,059 (D) 990 14

Machinery ................................................................................... 34,513 3,746 23,302 2,796 6,486 1,958 2,652 5,234 63 81 149 7,049 373 6,177 124Industrial machinery and equipment ..................................... 14,578 390 10,687 151 3,071 (D) 1,196 3,604 42 81 100 3,163 (D) 2,758 116

Computer and office equipment ....................................... 1,178 36 535 (D) 260 65 138 13 11 0 69 483 0 404 46Other .................................................................................. 13,400 354 10,152 (D) 2,811 (D) 1,059 3,591 32 81 31 2,680 (D) 2,354 71

Electronic and other electric equipment ............................... 19,934 3,356 12,615 2,645 3,415 (D) 1,456 1,630 21 0 49 3,886 (D) 3,419 8Audio, video, and communications equipment ................ 6,521 (D) 2,874 1,425 –2 0 (D) 811 2 0 16 (D) 12 613 4Electronic components and accessories .......................... 3,075 85 1,003 137 (D) (D) 21 387 –1 0 33 1,953 2 1,874 2Other .................................................................................. 10,339 (D) 8,738 1,082 (D) (D) (D) 432 20 0 0 (D) (D) 932 2

Other manufacturing .................................................................. 57,393 7,113 34,196 6,317 5,348 (D) 1,815 14,713 1,575 (D) 570 13,027 (D) 11,092 (D)Textile products and apparel ................................................ 3,769 485 2,069 341 252 42 145 1,124 (D) 1 (D) 606 0 571 1Lumber, wood, furniture, and fixtures ................................... 1,121 205 534 8 (D) 1 65 227 (D) 0 (D) 287 (D) 144 0Paper and allied products ..................................................... 5,893 886 3,485 26 77 184 (D) 1,151 15 (D) (D) 576 (D) 278 (D)Printing and publishing .......................................................... 9,260 4,415 4,022 163 (D) (D) 59 2,167 20 1 9 769 (D) 555 24

Newspapers ....................................................................... 328 (D) 19 0 2 0 0 (D) 1 0 0 (D) 1 0 0Other .................................................................................. 8,932 (D) 4,003 163 (D) (D) 59 (D) 19 1 9 (D) (D) 555 24

Rubber products .................................................................... 4,904 32 2,314 (D) (D) (D) 32 75 4 0 0 2,553 0 2,551 0Miscellaneous plastics products ........................................... 2,829 520 1,575 192 402 25 26 616 131 0 (*) 604 (D) 543 0Stone, clay, and glass products ........................................... 9,822 78 7,008 2,418 801 0 545 1,882 318 0 0 2,418 984 1,389 0Transportation equipment ..................................................... 9,374 365 4,175 786 1,404 96 5 1,610 144 0 0 4,690 20 4,600 0

Motor vehicles and equipment ......................................... 7,058 340 1,971 (D) 1,261 (D) 0 –17 139 0 0 4,608 20 4,588 0Other transportation equipment ........................................ 2,316 25 2,204 (D) 143 (D) 5 1,627 5 0 0 82 0 11 0

Instruments and related products ......................................... 6,536 36 5,623 662 449 17 548 3,224 526 0 35 317 0 283 0Other ...................................................................................... 3,885 90 3,391 (D) 128 4 (D) 2,638 (D) 0 0 208 11 178 (D)

Wholesale trade ............................................................................ 41,714 2,103 16,916 1,801 5,930 1,667 1,024 3,405 928 653 22 20,908 226 20,108 183Motor vehicles and equipment .................................................. 9,697 (D) 3,514 6 3,193 18 2 (D) (D) (*) (*) 5,899 8 5,787 (*)Professional and commercial equipment and supplies ............ 4,003 33 1,492 10 563 423 45 (D) 1 0 4 2,472 0 2,756 1Metals and minerals, except petroleum .................................... 2,151 431 677 112 345 2 50 75 33 107 0 903 –3 851 0Electrical goods ......................................................................... 8,503 158 683 243 115 36 15 122 27 19 1 7,604 1 7,426 11Machinery, equipment, and supplies ........................................ 3,505 66 1,399 95 505 91 247 281 60 (D) (D) 1,874 24 1,752 27Other durable goods .................................................................. 3,285 331 2,645 186 127 528 89 1,230 187 4 0 115 14 2 2Groceries and related products ................................................. 2,073 (D) 1,033 (D) 17 38 (D) 244 131 (D) (D) 426 0 340 2Farm-product raw materials ...................................................... 1,083 2 588 (D) 12 5 31 86 (D) (D) 0 223 3 214 0Other nondurable goods ............................................................ 7,416 371 4,885 439 1,053 527 (D) 992 (D) (D) 10 1,391 179 980 140

Retail trade .................................................................................... 24,770 2,481 16,872 1,009 6,617 2,656 5 3,509 281 (*) 1,191 3,942 28 3,414 3General merchandise stores ..................................................... 641 4 588 0 0 2 0 (D) 7 0 (D) 42 –2 43 (D)Food stores ................................................................................ 14,661 (D) 11,756 –2 (D) (D) 0 2,093 69 0 (D) (D) 0 (D) 0Apparel and accessory stores ................................................... 2,446 (D) 890 212 79 (D) –2 98 (D) 0 (D) (D) 8 (D) 0Other .......................................................................................... 7,022 1,715 3,638 799 (D) 433 7 (D) (D) (*) 390 1,186 22 1,015 (D)

Finance, except depository institutions .................................... 6,277 510 2,973 188 191 422 950 1,217 (D) 3 –56 2,691 13 2,794 (D)

Insurance ....................................................................................... 11,414 1,224 6,467 (D) (D) 788 385 2,754 (D) 0 14 126 10 80 (D)

Real estate .................................................................................... 6,101 823 2,104 242 546 581 191 402 258 (*) 1,012 1,869 296 1,276 34

Services ......................................................................................... 26,230 2,923 15,773 2,534 1,941 610 2,979 5,551 1,741 37 460 5,274 377 3,906 22Hotels and other lodging places ............................................... 4,928 62 1,550 601 62 126 (D) 698 158 –1 342 2,817 2 1,988 0Business services ...................................................................... 10,882 448 8,071 1,045 496 (D) 1,972 3,116 1,127 32 66 1,119 202 805 21

Computer and data processing services .............................. 2,682 336 1,806 301 (D) 11 (D) 821 8 0 46 539 2 452 –52Other business services ........................................................ 8,201 112 6,265 744 (D) (D) (D) 2,294 1,119 32 20 580 201 353 73

Motion pictures, including television tape and film .................. 1,715 (D) (D) –62 3 3 1 (D) (D) 0 3 125 (D) 42 0Engineering, architectural, and surveying services .................. 2,143 153 1,843 364 (D) 192 49 76 0 6 0 141 0 141 0Accounting, research, management, and related services ...... 1,390 23 923 (D) 45 38 68 403 3 0 6 434 1 434 1Health services .......................................................................... 2,802 691 2,004 66 (D) (*) (D) 83 (D) 0 0 (D) (D) (D) 0Other services ............................................................................ 2,371 (D) (D) (D) 32 (D) 18 (D) 274 0 43 (D) 18 (D) (*)

Other industries ........................................................................... 42,014 4,705 32,715 (D) (D) (D) 750 15,191 823 (D) (D) 3,340 (D) 1,549 101Agriculture, forestry, and fishing ............................................... 779 43 318 55 84 32 39 60 270 2 28 117 8 98 (*)Mining ......................................................................................... 5,475 1,762 3,359 37 (D) (*) (D) 1,632 (D) (D) 0 214 13 (D) (*)

Coal ........................................................................................ 1,828 17 1,829 0 (D) 0 (D) 305 (*) 0 0 –18 (*) –18 0Other ...................................................................................... 3,647 1,745 1,530 37 (*) (*) 2 1,327 (D) (D) 0 232 13 (D) (*)

Construction ............................................................................... 3,552 42 2,321 569 624 45 (D) (D) (D) 0 (D) 860 109 504 (D)Transportation ............................................................................ 13,524 2,122 10,032 69 197 (D) 390 4,511 177 0 (D) 1,006 6 780 (D)Communication and public utilities ............................................ 18,685 735 16,685 (D) 0 39 (*) (D) (D) 0 19 1,144 (D) (D) (D)

* Less than $500,000.D Suppressed to avoid disclosure of data of individual companies.NOTE.—Estimates for 1996 are revised.

August •

Table 24.2.—Gross Product of Nonbank U.S. Affiliates, SIC-Based Industry of Affiliate by Country of Ultimate Beneficial Owner, 1997[Millions of dollars]

Allcountries Canada

Europe LatinAmerica

andOther

WesternHemi-sphere

Africa MiddleEast

Asia and Pacific

UnitedStatesTotal

Of which:

Total

Of which:

France Germany Nether-lands

Switzer-land

UnitedKingdom Australia Japan

All industries ................................................................... 384,883 34,464 245,919 35,863 46,171 33,750 25,637 78,550 13,545 2,843 7,295 73,667 5,207 62,345 7,151

Petroleum ...................................................................................... 35,220 1,392 20,766 (D) 131 (D) 225 6,946 6,820 (D) 3,343 (D) 723 128 (D)Petroleum and coal products manufacturing ............................ 23,449 16 17,854 24 77 (D) 0 (D) (D) 0 (D) 704 680 24 (D)Other .......................................................................................... 11,772 1,376 2,912 (D) 54 888 225 (D) (D) (D) (D) (D) 43 104 75

Manufacturing ............................................................................... 172,409 16,672 116,766 15,875 25,987 7,391 14,523 38,820 2,206 1,264 1,096 33,326 2,772 27,802 1,078

Food and kindred products ....................................................... 14,166 (D) 9,581 570 107 (D) 2,471 4,418 218 33 8 1,590 (D) 1,045 (D)Beverages .............................................................................. 3,377 (D) 1,264 181 53 0 13 971 4 0 0 441 0 340 (D)Other ...................................................................................... 10,789 1,063 8,317 389 55 (D) 2,458 3,447 214 33 8 1,148 (D) 705 6

Chemicals and allied products .................................................. 41,197 853 35,482 3,331 10,704 3,305 6,478 9,817 33 (D) 202 4,435 657 2,489 (D)Industrial chemicals and synthetics ...................................... 14,867 62 11,919 1,787 4,233 1,412 894 2,463 7 0 6 2,871 (D) 1,045 1Drugs ..................................................................................... 16,110 15 15,456 962 4,103 76 5,545 4,285 2 0 135 497 0 497 4Soap, cleaners, and toilet goods .......................................... 4,735 (D) 4,202 (D) 1,801 (D) 0 (D) 1 0 (D) 259 17 242 (D)Other ...................................................................................... 5,485 (D) 3,905 (D) 567 (D) 39 (D) 22 (D) (D) 808 (D) 705 0

Primary and fabricated metals .................................................. 17,751 (D) 9,033 2,152 2,785 (D) 458 1,979 (D) (D) 14 5,587 197 4,996 9Primary metal industries ....................................................... 9,255 1,034 2,946 410 934 10 338 386 (D) (D) 3 4,524 (D) 4,024 2

Ferrous .............................................................................. 5,422 (D) 1,238 300 310 10 64 (D) (D) (D) 0 3,933 42 3,550 2Nonferrous ......................................................................... 3,833 (D) 1,708 110 624 0 274 (D) 2 (D) 3 591 (D) 474 0

Fabricated metal products .................................................... 8,496 (D) 6,087 1,742 1,851 (D) 120 1,593 (D) 0 11 1,063 (D) 972 7

Machinery ................................................................................... 38,233 3,761 25,786 2,921 6,585 (D) 2,904 6,691 (D) (D) 260 8,150 505 7,243 (D)Industrial machinery and equipment ..................................... 16,915 444 12,771 105 (D) (D) 1,439 4,939 (D) (D) 228 3,226 (D) 2,969 (D)

Computer and office equipment ....................................... 960 38 419 64 (D) 69 114 –1 (D) 0 (D) 373 0 421 (D)Other .................................................................................. 15,955 406 12,352 41 (D) (D) 1,326 4,940 25 (D) (D) 2,854 (D) 2,547 110

Electronic and other electric equipment ............................... 21,318 3,317 13,014 2,816 (D) (D) 1,465 1,752 15 0 33 4,923 (D) 4,274 15Audio, video, and communications equipment ................ 6,392 (D) 2,752 (D) (*) 3 (D) 530 7 0 29 (D) 15 742 2Electronic components and accessories .......................... 5,537 82 2,900 94 193 (D) 25 723 8 0 4 2,530 0 2,423 13Other .................................................................................. 9,389 (D) 7,363 (D) (D) 62 (D) 499 0 0 0 (D) (D) 1,108 0

Other manufacturing .................................................................. 61,061 7,714 36,884 6,902 5,805 (D) 2,211 15,914 1,268 (D) 612 13,564 (D) 12,030 (D)Textile products and apparel ................................................ 3,483 451 1,709 334 287 45 (D) 743 (D) 3 (D) 626 0 463 0Lumber, wood, furniture, and fixtures ................................... 1,010 450 303 15 169 0 62 15 23 0 77 157 0 157 0Paper and allied products ..................................................... 5,106 747 2,882 24 –13 204 (D) 1,042 21 (D) (D) 574 (D) 244 (D)Printing and publishing .......................................................... 9,753 4,841 4,312 253 839 1,045 45 2,117 20 0 0 554 (D) 576 26

Newspapers ....................................................................... 382 (D) 20 0 0 4 0 12 0 0 0 (D) 0 5 0Other .................................................................................. 9,371 (D) 4,292 253 839 1,042 45 2,105 20 0 0 (D) (D) 571 26

Rubber products .................................................................... 5,576 18 2,654 (D) 750 –21 42 426 0 0 0 2,905 0 2,905 0Miscellaneous plastics products ........................................... 2,547 544 1,443 179 391 –1 29 605 132 0 8 421 (D) 562 0Stone, clay, and glass products ........................................... 12,067 80 9,300 2,739 876 0 615 3,437 133 0 0 2,553 1,062 1,424 1Transportation equipment ..................................................... 11,273 476 5,424 943 1,647 (D) (D) 2,563 (D) 0 0 5,237 21 5,173 (D)

Motor vehicles and equipment ......................................... 9,054 464 3,347 (D) 1,502 (D) (D) 1,016 (D) 0 0 5,112 21 5,092 (D)Other transportation equipment ........................................ 2,219 12 2,078 (D) 144 34 3 1,547 4 0 0 125 0 81 0

Instruments and related products ......................................... 6,483 32 5,425 622 747 15 1,120 2,424 (D) 0 38 287 0 279 (D)Other ...................................................................................... 3,763 74 3,433 (D) 113 11 (D) 2,542 –1 0 0 251 2 247 6

Wholesale trade ............................................................................ 45,776 2,587 19,702 2,363 7,099 1,465 1,271 (D) 1,038 794 (D) 21,430 30 20,704 (D)Motor vehicles and equipment .................................................. 11,841 (D) 4,401 –1 4,146 14 0 15 (D) 3 5 7,006 10 6,908 0Professional and commercial equipment and supplies ............ 4,268 156 1,205 7 415 (D) 86 334 –7 0 3 2,904 1 2,952 6Metals and minerals, except petroleum .................................... 1,848 444 733 117 374 –1 45 79 36 108 0 527 (*) 470 0Electrical goods ......................................................................... 8,216 (D) 1,382 (D) 333 75 16 358 (D) 0 0 6,236 2 6,131 (D)Machinery, equipment, and supplies ........................................ 3,205 59 1,800 147 527 94 280 392 (D) (D) (D) 1,183 5 1,098 22Other durable goods .................................................................. 3,713 185 2,600 170 138 357 142 1,330 163 4 1 758 1 665 2Groceries and related products ................................................. 2,882 385 1,343 (D) 14 40 (D) 230 161 16 0 975 0 848 1Farm-product raw materials ...................................................... 1,517 4 (D) (D) 8 1 23 (D) (D) 0 1 243 1 238 0Other nondurable goods ............................................................ 8,287 464 (D) 564 1,145 (D) (D) (D) (D) (D) 11 1,598 10 1,394 136

Retail trade .................................................................................... 28,313 2,728 20,391 1,006 7,035 3,929 28 5,221 271 0 1,168 3,755 (D) 3,308 (*)General merchandise stores ..................................................... 178 0 173 0 0 0 1 (D) 0 0 0 5 0 5 0Food stores ................................................................................ 17,776 (D) 14,698 –2 (D) (D) 0 3,129 65 0 (D) (D) 0 (D) 0Apparel and accessory stores ................................................... 2,469 (D) 937 (D) (D) (D) 9 79 108 0 664 (D) 9 (D) (*)Other .......................................................................................... 7,890 1,893 4,583 (D) (D) 462 18 (D) 98 0 (D) (D) (D) (D) (*)

Finance, except depository institutions .................................... 9,669 775 5,396 359 328 435 2,146 2,007 –12 28 –70 3,388 22 3,470 164

Insurance ....................................................................................... 16,629 1,268 11,091 (D) (D) 1,684 1,105 3,414 124 0 0 (D) 6 57 (D)

Real estate .................................................................................... 7,318 1,339 2,704 217 653 924 138 (D) 256 –17 1,117 1,868 205 1,306 51

Services ......................................................................................... 29,278 2,819 18,624 2,764 2,453 641 5,657 5,926 2,011 (D) 364 5,352 (D) 3,960 (D)Hotels and other lodging places ............................................... 4,962 36 1,435 (D) 92 55 50 (D) (D) 0 320 (D) 0 2,092 0Business services ...................................................................... 14,123 379 10,957 1,410 (D) 336 (D) 3,609 (D) (D) (D) (D) 128 892 (D)

Computer and data processing services .............................. 4,038 343 3,023 348 (D) –30 (D) 928 8 0 –5 719 14 623 –49Other business services ........................................................ 10,084 36 7,934 1,062 (D) 366 (D) 2,681 (D) (D) (D) (D) 115 270 (D)

Motion pictures, including television tape and film .................. 1,671 678 821 –5 1 0 0 820 45 0 5 123 (D) 32 –1Engineering, architectural, and surveying services .................. 1,296 125 1,041 117 157 193 13 (D) 0 0 2 129 0 129 (*)Accounting, research, management, and related services ...... 1,546 16 1,078 506 32 42 48 457 69 0 0 335 0 335 47Health services .......................................................................... 3,716 854 2,759 0 (D) 0 (D) 0 (D) (*) 0 (D) 71 37 (*)Other services ............................................................................ 1,965 732 533 (D) 9 16 18 444 (D) 0 (D) 489 2 444 –3

Other industries ........................................................................... 40,270 4,885 30,478 (D) (D) (D) 544 11,955 831 (D) (D) 3,561 1,137 1,611 156Agriculture, forestry, and fishing ............................................... 732 54 324 39 98 (*) 79 93 230 0 38 76 4 72 10Mining ......................................................................................... 5,952 1,460 3,911 0 (D) 0 67 2,451 33 (D) 0 (D) 13 405 0

Coal ........................................................................................ 2,474 (D) 2,281 0 (D) 0 71 973 0 0 0 (D) 0 (D) 0Other ...................................................................................... 3,478 (D) 1,631 0 –3 0 –4 1,479 33 (D) 0 (D) 13 (D) 0

Construction ............................................................................... 3,955 (D) 2,474 461 774 49 271 189 223 0 103 (D) (D) 512 64Transportation ............................................................................ 11,499 2,191 7,430 64 100 (D) 127 (D) 287 0 (D) 1,410 11 868 (D)Communication and public utilities ............................................ 18,132 (D) 16,339 (D) 9 18 0 (D) 58 0 21 729 (D) –247 (D)

* Less than $500,000.D Suppressed to avoid disclosure of data of individual companies.NOTE.—Estimates for 1997 are preliminary.

• August

Table 24.3.—Gross Product of Nonbank U.S. Affiliates, NAICS-Based Industry of Affiliate by Country of Ultimate Beneficial Owner, 1997[Millions of dollars]

Allcountries Canada

Europe LatinAmerica

andOther

WesternHemi-sphere

Africa MiddleEast

Asia and Pacific

UnitedStatesTotal

Of which:

Total

Of which:

France Germany Nether-lands

Switzer-land

UnitedKingdom Australia Japan

All industries ................................................................... 384,883 34,464 245,919 35,863 46,171 33,750 25,637 78,550 13,545 2,843 7,295 73,667 5,207 62,345 7,151

Manufacturing ............................................................................... 188,477 13,599 130,865 15,725 25,266 17,812 14,492 42,717 2,666 1,264 4,172 33,538 3,520 27,307 2,373

Food ........................................................................................... 10,953 1,048 8,437 412 80 (D) 2,458 3,447 210 33 8 1,212 (D) 768 6Beverages and tobacco products ............................................. 5,907 (D) 3,802 160 27 0 14 3,418 9 0 0 430 0 328 (D)Textiles, apparel, and leather products .................................... 3,479 455 1,721 327 290 50 (D) 754 (D) 3 (D) 606 0 442 0Wood products ........................................................................... 580 414 137 15 17 0 56 7 23 0 0 6 0 6 0Paper .......................................................................................... 5,048 747 2,838 11 –32 204 (D) 1,042 21 (D) (D) 561 (D) 231 (D)Printing and related support activities ...................................... 2,803 1,768 940 101 38 (D) 10 304 2 0 0 93 0 88 0Petroleum and coal products .................................................... 23,421 16 17,853 24 77 (D) 0 (D) (D) 0 (D) 677 680 –3 (D)

Chemicals ................................................................................... 40,906 856 35,406 3,338 10,704 3,218 6,482 9,817 33 (D) 202 4,218 436 2,493 (D)Basic chemicals ..................................................................... 9,285 –1 7,268 1,379 2,450 (D) (D) 1,794 5 0 37 1,976 (D) 554 0Resins and synthetic rubber, fibers, and filaments ............. 5,008 63 4,283 (D) (D) (D) (D) (D) 2 0 0 659 0 472 0Pharmaceuticals and medicines ........................................... 16,094 15 15,440 962 4,103 76 5,529 4,285 2 0 135 497 0 497 4Soap, cleaning compounds, and toilet preparations ............ 4,735 (D) 4,202 (D) 1,801 (D) 0 (D) 1 0 (D) 259 17 242 (D)Other ...................................................................................... 5,784 (D) 4,213 74 (D) 112 (D) 2,802 22 (D) (D) 826 (D) 728 1

Plastics and rubber products .................................................... 7,991 552 3,952 1,565 1,133 –27 60 906 132 0 8 3,347 (D) 3,489 0Nonmetallic mineral products .................................................... 12,044 75 9,284 2,739 860 0 615 3,437 132 0 0 2,553 1,062 1,424 1Primary and fabricated metals .................................................. 16,510 1,917 7,860 2,150 1,422 51 389 2,076 653 (D) (D) 5,487 338 4,739 9

Primary metals ....................................................................... 8,600 1,034 2,428 410 583 2 312 386 (D) (D) 3 4,388 321 3,671 2Fabricated metal products .................................................... 7,910 883 5,432 1,740 839 49 77 1,690 (D) 0 (D) 1,099 17 1,068 7

Machinery ................................................................................... 16,607 376 13,095 45 2,983 60 2,679 4,952 25 (D) (D) 2,793 169 2,421 110Agriculture, construction, and mining machinery ................. 4,166 10 3,545 0 (D) 1 695 (D) (D) (D) 0 522 20 493 0Industrial machinery .............................................................. 1,665 17 1,164 4 445 12 224 148 3 0 0 478 (D) 468 3Other ...................................................................................... 10,776 349 8,386 40 (D) 48 1,761 (D) (D) 0 (D) 1,793 (D) 1,460 107

Computers and electronic products .......................................... 15,658 2,922 8,485 2,006 454 (D) 877 2,272 10 0 121 4,059 22 3,911 61Computers and peripheral equipment .................................. 1,022 62 295 67 41 69 114 –1 –7 0 89 535 0 584 48Communications equipment .................................................. 5,889 (D) (D) (D) 0 0 (D) (D) 10 0 29 1,330 6 1,312 0Audio and video equipment .................................................. 1,054 4 837 (D) (*) 3 0 57 1 0 3 206 0 165 3Semiconductors and other electronic components .............. 4,512 41 2,956 150 193 (D) (D) 722 4 0 0 1,495 0 1,382 16Navigational, measuring, and other instruments .................. 2,542 2 2,354 106 219 15 627 1,030 2 0 –1 190 0 181 –5Magnetic and optical media .................................................. 639 (D) (D) 0 0 0 0 (D) 0 0 0 303 17 287 –1

Electrical equipment, appliances, and components ................. 7,537 432 5,929 1,038 (D) 48 50 186 0 0 0 1,176 (D) 715 0Transportation equipment .......................................................... 13,554 496 6,973 950 3,173 (D) (D) 2,564 (D) 0 0 5,954 21 5,890 (D)

Motor vehicles, bodies and trailers, and parts ..................... 11,372 496 4,835 (D) 2,966 (D) (D) 1,018 (D) 0 0 5,910 21 5,809 (D)Other ...................................................................................... 2,182 0 2,138 (D) 207 34 1 1,547 0 0 0 44 0 81 0

Furniture and related products .................................................. 654 35 440 0 (D) (D) 40 8 0 0 77 102 0 102 0Miscellaneous manufacturing .................................................... 4,824 (D) 3,715 844 582 14 517 (D) (D) 0 39 265 2 263 (D)

Wholesale trade ............................................................................ 51,856 2,621 21,107 2,637 7,088 1,488 1,450 4,490 5,243 803 317 21,501 30 20,752 264Motor vehicles and motor vehicle parts and supplies ............. 11,879 (D) 4,459 –1 4,146 14 0 73 (D) 3 5 7,006 10 6,908 0Professional and commercial equipment and supplies ............ 4,245 156 1,205 7 415 (D) 86 334 –7 0 3 2,881 1 2,930 6Electrical goods ......................................................................... 8,126 (D) 1,273 (D) 191 75 16 358 (D) 0 0 6,260 2 6,155 13Other durable goods .................................................................. 8,843 684 5,265 431 1,182 450 466 1,803 249 185 24 2,412 6 2,173 24Petroleum and petroleum products ........................................... 6,082 36 1,333 (D) –10 22 178 (D) (D) (D) 272 145 (*) 124 83Other nondurable goods ............................................................ 12,681 875 7,573 1,668 1,165 (D) 703 (D) (D) (D) 12 2,798 11 2,462 137

Retail trade .................................................................................... 25,009 1,645 18,577 493 7,026 (D) 63 4,134 288 0 1,052 3,448 17 3,013 (*)Food and beverage stores ........................................................ 17,720 (D) 14,664 –2 (D) (D) –1 3,129 65 0 (D) (D) 0 (D) 0Other .......................................................................................... 7,290 (D) 3,913 495 (D) 702 64 1,005 223 0 (D) (D) 17 (D) (*)

Information .................................................................................... 27,120 4,334 21,411 (D) 833 521 (D) 11,464 77 0 22 (D) 904 388 (D)Publishing industries .................................................................. 7,348 (D) 3,599 154 (D) (D) (D) 1,898 26 0 –4 (D) (D) (D) 30Motion picture and sound recording industries ........................ 2,542 678 1,709 –5 (D) (D) 0 739 45 0 5 106 (D) 33 –1Broadcasting and telecommunications ...................................... 16,153 481 (D) (D) 9 –8 0 (D) 5 0 21 628 (D) –244 (D)

Broadcasting, cable networks, and program distribution ..... 1,421 (D) 0 0 0 0 0 0 7 0 0 (D) (D) 4 0Telecommunications .............................................................. 14,733 (D) (D) (D) 9 –8 0 (D) –2 0 21 (D) 0 –248 (D)

Information services and data processing services ................. 1,076 (D) (D) –21 2 –5 0 (D) 0 0 0 51 (*) (D) 5

Finance (except depository institutions) and insurance ........ 26,331 2,077 16,302 4,479 614 2,117 3,263 5,120 149 28 7 (D) 29 3,569 (D)Finance, except depository institutions ..................................... 9,703 812 5,211 (D) (D) 433 2,157 1,706 25 28 7 3,457 23 3,512 164Insurance carriers and related activities ................................... 16,628 1,266 11,091 (D) (D) 1,684 1,105 3,414 124 0 0 (D) 6 57 (D)

Real estate and rental and leasing ........................................... 9,084 1,434 4,021 462 727 1,048 138 1,367 250 (D) 1,119 (D) 314 1,532 52Real estate ................................................................................. 7,290 1,355 2,654 217 653 924 138 (D) 257 –17 1,116 1,874 205 1,313 51Rental and leasing (except real estate) ................................... 1,795 79 1,367 245 74 124 0 (D) –7 (D) 3 (D) 109 219 (*)

Professional, scientific, and technical services ...................... 5,981 278 4,457 1,421 734 247 114 1,417 41 0 3 1,080 17 976 121Architectural, engineering, and related services ....................... 1,358 125 1,091 117 157 197 13 147 0 0 2 140 0 140 (*)Computer systems design and related services ...................... 1,756 138 1,071 366 (D) 9 (*) 66 0 0 –1 556 12 471 –7Management, scientific, and technical consulting .................... 411 5 216 170 5 6 0 36 41 0 0 17 0 16 131Other .......................................................................................... 2,456 10 2,079 767 (D) 35 101 1,168 0 0 2 367 5 349 –3

Other industries ........................................................................... 51,025 8,475 29,179 (D) 3,883 (D) (D) 7,840 4,830 (D) 603 7,019 376 4,809 (D)Agriculture, forestry, fishing, and hunting ................................. 730 54 324 39 98 (*) 79 94 231 0 38 74 4 70 10Mining ......................................................................................... 9,826 1,854 5,080 15 (D) 628 67 2,511 (D) (D) –10 533 56 465 –8Utilities ........................................................................................ 1,445 159 1,238 (D) (*) 26 0 (D) 53 0 0 –4 0 –4 0Construction ............................................................................... 4,358 182 2,869 461 775 49 271 583 223 0 103 917 (D) 502 64Transportation and warehousing ............................................... 11,999 2,953 6,990 66 132 (D) 137 1,280 744 0 (D) 1,222 3 688 (D)Management of nonbank companies and enterprises ............. –364 –36 –173 –16 –23 3 –1 –43 –6 (*) –79 –68 –1 –41 0Administration, support, and waste management .................... 8,993 (D) 6,341 420 14 931 3,570 1,270 1,757 0 0 402 (D) 283 (D)Health care and social assistance ............................................ 3,714 854 2,760 0 (D) 0 (D) 0 (D) (*) –2 (D) 71 37 (*)Accommodation and food services ........................................... 8,577 (D) 3,303 1,222 101 (D) 50 1,598 191 0 446 (D) 0 2,367 (*)

Accommodation ..................................................................... 4,961 33 1,435 (D) 92 55 50 (D) (D) 0 320 (D) 0 2,093 0Food services and drinking places ....................................... 3,616 (D) 1,868 (D) 8 (D) 0 (D) (D) 0 126 279 0 273 (*)

Miscellaneous services .............................................................. 1,746 726 447 6 6 14 18 (D) (D) 0 (D) 519 (D) 443 0

* Less than $500,000.D Suppressed to avoid disclosure of data of individual companies.NOTE.—Estimates for 1997 are preliminary.

August •

Table 25.1.—Employment by Nonbank U.S. Affiliates, State by Country of Ultimate Beneficial Owner, 1996[Thousands of employees]

Allcountries Canada

Europe LatinAmerica

and OtherWesternHemi-sphere

Africa MiddleEast

Asia and Pacific

UnitedStatesTotal

Of which:

Total

Of which:

France Germany Nether-lands

Switzer-land

UnitedKingdom Australia Japan

Total ................................................................ 5,105.0 608.9 3,196.6 420.2 626.3 393.2 321.4 988.2 146.6 22.8 92.6 994.7 79.6 788.8 42.7

New England:Connecticut ............................................................... 85.1 5.9 69.5 8.2 12.7 19.2 7.3 14.6 1.0 .1 .9 7.0 .7 5.7 .6Maine ........................................................................ 30.4 13.2 11.8 .5 1.6 1.2 .6 6.3 A H (*) 2.5 .1 1.2 .1Massachusetts .......................................................... 162.3 19.7 112.3 10.3 14.1 27.0 14.0 38.1 1.5 .3 11.8 15.7 .6 14.3 1.0New Hampshire ....................................................... 30.8 6.7 19.8 1.7 5.7 1.1 1.3 8.8 .7 .4 .2 2.7 (*) 2.5 .2Rhode Island ............................................................ 19.2 2.6 15.0 .5 1.8 H .5 6.7 (*) .3 .1 1.0 (*) .9 .3Vermont .................................................................... 9.9 4.9 3.6 .7 .6 (*) 1.1 .8 .1 0 .1 1.0 .1 .8 .2

Mideast:Delaware .................................................................. 16.3 .6 11.5 .6 1.2 1.5 .7 5.9 A (*) .8 1.5 (*) .8 GDistrict of Columbia ................................................. 12.8 1.3 7.7 .9 .5 1.3 .5 4.1 .1 0 .3 3.3 .2 3.0 .1Maryland ................................................................... 93.8 10.4 71.9 5.8 8.0 7.8 5.7 33.8 2.1 (*) .8 8.3 .9 6.4 .3New Jersey .............................................................. 209.4 10.7 144.7 21.4 33.6 14.5 23.1 35.2 7.6 G 2.7 39.3 .8 33.5 HNew York ................................................................. 349.9 41.4 219.8 30.3 41.4 39.4 22.5 63.0 5.5 .9 13.1 60.4 4.7 48.0 8.9Pennsylvania ............................................................ 238.3 23.3 183.1 24.2 33.5 23.7 10.0 71.1 2.8 .5 4.1 23.8 3.6 18.7 .8

Great Lakes:Illinois ........................................................................ 236.1 35.3 137.4 14.0 25.5 14.6 18.2 44.1 4.9 .2 2.8 54.0 3.2 41.9 1.5Indiana ...................................................................... 127.2 15.2 73.4 14.1 15.4 5.5 4.9 25.4 4.5 .5 1.2 32.0 1.0 29.8 .5Michigan ................................................................... 162.8 26.6 97.7 8.7 31.1 12.0 7.9 27.6 1.3 1.5 2.2 33.4 1.9 30.8 .2Ohio .......................................................................... 226.7 23.3 134.5 16.0 24.6 14.4 16.1 46.2 6.1 1.0 5.3 56.0 1.7 53.2 .5Wisconsin ................................................................. 73.6 13.7 52.1 4.8 12.6 5.3 5.8 14.0 1.1 .1 .4 6.0 .8 4.7 .1

Plains:Iowa .......................................................................... 37.7 5.4 25.1 3.2 4.0 2.5 1.5 9.5 .8 .5 .2 5.6 F 3.8 .1Kansas ...................................................................... 42.7 8.3 28.9 11.5 4.2 1.7 2.3 6.8 .6 .3 .3 4.3 .5 2.8 .2Minnesota ................................................................. 89.8 18.2 64.9 5.3 9.1 22.5 3.6 19.2 .9 .3 .4 4.7 .7 2.7 .3Missouri .................................................................... 84.1 14.9 55.3 10.1 13.5 4.5 7.5 13.9 1.5 .1 2.0 9.8 .6 7.2 .6Nebraska .................................................................. 19.1 3.1 12.8 2.1 1.8 .4 1.4 6.0 .6 .1 .2 2.2 (*) 2.0 .1North Dakota ............................................................ 4.7 .6 2.9 .4 1.7 .2 .1 .5 .9 .1 (*) .2 0 .2 0South Dakota ........................................................... 5.6 1.3 3.4 .2 .9 .2 .2 1.7 (*) .2 .2 .5 (*) .5 0

Southeast:Alabama ................................................................... 61.7 7.9 36.3 11.2 5.1 1.9 3.9 8.0 1.9 1.2 .9 13.4 1.4 9.4 .1Arkansas ................................................................... 37.6 4.2 21.4 5.6 2.8 1.8 1.7 4.9 .7 .5 .5 10.3 1.4 7.7 (*)Florida ....................................................................... 239.8 26.6 155.9 24.4 23.1 10.2 26.6 45.0 15.0 .4 5.5 35.1 5.7 23.4 1.3Georgia ..................................................................... 195.0 20.8 120.3 13.2 17.0 22.8 9.4 38.8 4.6 2.2 6.6 38.1 3.3 31.8 2.2Kentucky ................................................................... 86.5 10.7 39.3 4.9 10.5 1.9 2.6 13.5 2.2 .3 1.8 32.0 .3 28.8 .2Louisiana .................................................................. 55.7 4.1 32.3 5.6 7.7 6.4 1.9 7.2 9.4 A 2.2 5.5 1.3 2.5 GMississippi ................................................................ 20.6 3.1 12.1 3.0 2.1 1.3 .6 2.6 1.3 .3 .9 2.5 1.0 1.5 .4North Carolina .......................................................... 231.6 29.2 173.5 18.4 38.2 11.3 13.5 53.0 3.4 .4 3.4 20.9 1.9 17.5 .8South Carolina ......................................................... 117.2 6.1 92.1 15.3 23.0 16.5 4.6 16.5 2.4 .7 .9 15.0 .6 12.9 (*)Tennessee ................................................................ 136.4 16.5 85.0 9.4 8.8 17.2 5.5 30.1 2.3 .3 1.0 31.3 2.5 27.5 .1Virginia ...................................................................... 146.2 11.1 108.8 11.7 17.9 5.4 8.4 37.1 3.0 A 1.0 21.2 .8 17.9 GWest Virginia ............................................................ 26.1 4.1 18.7 2.2 5.7 2.0 1.4 3.9 .3 (*) .3 2.7 .6 2.1 (*)

Southwest:Arizona ..................................................................... 57.8 10.0 32.7 5.3 7.3 2.2 3.2 11.3 1.4 .1 .7 12.6 4.7 6.3 .2New Mexico ............................................................. 15.4 1.7 9.5 1.2 2.5 1.8 .2 3.1 .9 (*) .1 3.2 1.0 1.9 (*)Oklahoma ................................................................. 36.7 5.3 21.2 6.5 3.2 1.2 1.4 6.0 3.1 .4 .5 5.7 .4 4.5 .5Texas ........................................................................ 330.2 36.5 205.3 28.1 42.2 21.2 20.1 58.9 23.0 1.5 6.5 55.0 8.8 34.0 2.5

Rocky Mountains:Colorado ................................................................... 72.7 8.7 44.5 4.0 7.0 2.8 5.5 19.5 1.8 .4 .9 15.2 .9 9.7 1.4Idaho ......................................................................... 12.3 2.0 9.1 .5 H .2 .8 2.1 .3 (*) (*) .9 (*) .5 (*)Montana .................................................................... 4.5 1.1 2.4 .2 1.0 .2 .2 .8 (*) (*) .4 .6 (*) .4 (*)Utah .......................................................................... 32.7 3.9 22.9 1.2 9.6 1.1 2.1 7.0 .2 .2 .1 5.4 .5 3.6 (*)Wyoming ................................................................... 6.5 .3 5.3 1.2 .8 .1 .1 2.5 .3 0 (*) .5 0 (*) (*)

Far West:Alaska ....................................................................... 10.2 2.4 3.6 .1 .2 .7 .2 2.4 .4 (*) (*) 2.9 .1 2.2 .9California .................................................................. 557.5 54.7 273.0 37.1 54.1 26.1 38.4 86.1 17.7 1.0 6.6 200.7 13.8 155.9 3.8Hawaii ....................................................................... 47.5 .9 6.8 2.5 .3 G .4 1.9 2.9 (*) .4 36.0 1.5 32.6 .6Nevada ..................................................................... 25.5 7.3 11.5 2.6 3.1 1.0 .9 3.2 .4 .8 .3 5.2 1.7 3.2 .1Oregon ...................................................................... 49.2 5.9 26.9 1.9 12.6 1.3 2.5 4.6 .5 (*) .5 14.8 .7 12.9 .6Washington ............................................................... 86.6 16.8 45.5 4.2 14.2 4.3 5.9 9.6 1.2 .6 .5 20.5 1.4 16.7 1.5

Puerto Rico ................................................................... 20.0 .3 13.6 1.8 1.9 .8 2.7 3.7 .5 0 (*) 4.6 .1 1.4 .9Other U.S. areas 1 ........................................................ 10.9 .1 3.5 G A F .1 1.1 .3 (*) 0 6.7 A 3.7 .2Foreign 2 ....................................................................... 6.0 .4 4.6 A .3 H .1 .3 .1 0 0 1.0 (*) 1.0 (*)

* Less than 50 employees.1. See footnote 3 to table 10.2. See footnote 4 to table 10.

NOTES.—Size ranges are given in employment cells that are suppressed. The size ranges are: A—1 to 499;F—500 to 999; G—1,000 to 2,499; H—2,500 to 4,999; I—5,000 to 9,999; J—10,000 to 24,999; K—25,000 to 49,999;L—50,000 to 99,999; M—100,000 or more.

Estimates for 1996 are revised.

• August

Table 25.2.—Employment by Nonbank U.S. Affiliates, State by Country of Ultimate Beneficial Owner, 1997[Thousands of employees]

Allcountries Canada

Europe LatinAmerica

and OtherWesternHemi-sphere

Africa MiddleEast

Asia and Pacific

UnitedStatesTotal

Of which:

Total

Of which:

France Germany Nether-lands

Switzer-land

UnitedKingdom Australia Japan

Total ................................................................ 5,164.3 601.6 3,213.9 411.2 657.6 391.4 352.1 983.2 168.1 22.4 92.7 1,012.6 80.1 812.4 52.9

New England:Connecticut ............................................................... 83.8 5.8 68.3 6.2 12.0 19.4 7.6 16.1 1.5 .2 .9 6.5 .6 5.5 .6Maine ........................................................................ 31.6 13.8 12.8 .8 1.8 1.1 .7 6.9 A G (*) 2.2 .1 1.2 .1Massachusetts .......................................................... 159.5 19.4 107.4 9.6 15.0 22.6 13.6 38.4 2.9 .3 12.8 15.4 1.2 13.3 1.3New Hampshire ....................................................... 31.6 6.7 20.1 1.5 6.0 1.1 1.7 8.7 .9 .4 (*) 2.8 .1 2.5 .7Rhode Island ............................................................ 18.5 3.3 13.7 .6 1.4 H .5 6.2 .2 .2 (*) 1.1 (*) 1.1 (*)Vermont .................................................................... 9.6 4.5 3.5 .7 .6 (*) 1.1 .7 .1 .0 .1 1.0 (*) .9 .4

Mideast:Delaware .................................................................. 19.1 2.1 12.0 .8 2.0 1.4 .9 5.4 F (*) .8 1.9 .1 1.2 GDistrict of Columbia ................................................. 11.2 .7 6.8 .9 .5 .4 .8 3.9 .4 (*) .3 2.9 .2 2.7 (*)Maryland ................................................................... 92.0 7.4 72.0 5.6 8.0 8.3 7.6 31.1 2.7 (*) .6 9.1 1.2 6.9 .3New Jersey .............................................................. 212.4 11.6 145.0 20.3 35.3 15.5 22.5 37.8 8.4 G H 39.7 .5 34.4 3.6New York ................................................................. 351.5 41.5 212.8 29.3 41.4 42.1 24.8 57.2 9.7 .7 13.3 64.5 10.9 45.1 9.0Pennsylvania ............................................................ 225.0 24.1 167.3 27.8 34.6 24.3 11.1 51.4 3.9 .5 3.3 24.8 2.6 19.9 1.2

Great Lakes:Illinois ........................................................................ 224.5 27.7 138.9 13.5 26.9 14.9 19.4 49.0 5.4 .2 2.6 48.1 1.6 42.5 1.5Indiana ...................................................................... 128.3 12.0 75.3 14.5 16.8 5.0 5.4 27.4 3.7 .5 1.2 35.2 1.0 32.7 .3Michigan ................................................................... 171.4 24.1 103.7 6.7 34.4 13.0 9.6 30.6 2.3 G 3.6 34.1 1.1 32.6 GOhio .......................................................................... 234.1 21.7 136.0 14.8 25.0 13.5 20.0 46.9 7.4 1.1 5.7 61.3 2.1 56.5 1.1Wisconsin ................................................................. 76.5 12.4 56.5 4.3 14.9 4.6 5.7 16.3 1.3 .1 .4 5.6 .4 4.8 .1

Plains:Iowa .......................................................................... 37.8 4.4 26.3 3.2 4.3 3.1 1.7 9.9 .2 F A 6.0 .9 4.3 .1Kansas ...................................................................... 45.4 8.5 30.5 11.3 3.4 1.8 2.5 7.5 .6 .3 .2 4.8 .3 3.4 .6Minnesota ................................................................. 96.6 17.2 71.8 8.7 9.4 24.6 4.1 19.5 .8 .4 .4 5.6 .5 2.8 .4Missouri .................................................................... 84.0 11.4 58.4 10.4 13.6 4.6 7.5 16.3 1.5 .1 1.8 10.0 .8 8.3 .7Nebraska .................................................................. 20.8 4.2 13.7 2.3 1.9 .4 1.6 6.1 .6 .1 .1 2.0 (*) 1.9 .1North Dakota ............................................................ 3.5 .8 1.7 .4 .4 .3 (*) .6 .8 .1 (*) .1 (*) .1 (*)South Dakota ........................................................... 10.4 1.6 7.8 .2 1.1 H .1 1.9 (*) .1 .2 .7 .1 .6 0

Southeast:Alabama ................................................................... 65.0 9.7 36.1 11.3 6.1 2.0 3.2 8.4 2.6 1.2 1.5 13.8 1.5 9.3 .2Arkansas ................................................................... 35.2 2.9 22.0 4.7 2.7 1.6 1.8 6.3 .6 .4 .5 8.2 1.3 5.5 .5Florida ....................................................................... 240.9 28.9 157.5 21.8 23.3 9.3 25.5 43.2 14.6 .4 5.1 32.9 5.7 21.7 1.6Georgia ..................................................................... 188.9 16.8 121.7 11.8 19.3 19.8 10.1 42.3 4.5 G 6.0 35.4 3.8 28.6 GKentucky ................................................................... 89.5 9.4 39.9 4.9 11.2 3.6 2.9 12.3 2.2 .3 1.9 35.7 .2 33.0 .1Louisiana .................................................................. 58.0 6.3 33.1 5.1 9.0 6.7 1.9 7.6 9.0 .2 1.8 5.3 1.2 2.6 2.3Mississippi ................................................................ 21.7 3.7 11.8 3.3 2.3 .9 .6 2.9 1.5 .4 .8 3.1 .8 2.1 .4North Carolina .......................................................... 225.0 26.8 166.6 19.3 37.3 11.6 14.3 42.7 3.1 .3 3.0 24.4 2.8 17.8 .8South Carolina ......................................................... 116.9 4.3 93.7 15.2 23.5 16.1 5.1 18.3 2.6 .9 .6 14.7 .5 12.5 .1Tennessee ................................................................ 149.4 20.4 88.3 9.4 9.6 16.0 8.9 31.4 3.2 .3 1.7 35.4 2.0 30.2 .2Virginia ...................................................................... 143.3 11.7 105.2 10.1 17.0 4.8 10.2 36.3 3.8 .1 .8 20.7 .8 17.9 1.1West Virginia ............................................................ 27.2 4.9 19.5 2.0 5.8 2.0 3.5 4.2 .2 (*) .3 2.0 .2 1.8 .1

Southwest:Arizona ..................................................................... 59.4 9.2 34.1 5.2 8.1 2.9 3.9 11.3 1.9 .1 .6 13.0 5.1 6.6 .4New Mexico ............................................................. 17.4 2.2 10.9 .9 3.2 1.8 .7 3.4 .7 (*) (*) 3.5 1.0 2.3 .1Oklahoma ................................................................. 34.4 3.0 20.5 5.6 4.2 .7 1.9 5.0 2.5 .4 .5 6.0 .3 4.9 1.4Texas ........................................................................ 350.6 39.5 218.2 32.6 45.0 22.7 22.4 64.5 25.5 1.5 7.6 55.6 8.5 36.4 2.7

Rocky Mountains:Colorado ................................................................... 80.3 11.9 46.8 3.9 7.4 4.4 4.8 20.9 1.7 .3 .9 15.2 .9 10.5 3.3Idaho ......................................................................... 12.4 3.2 8.2 .4 H .2 .8 1.2 .3 (*) (*) .7 (*) .3 (*)Montana .................................................................... 4.4 .9 2.4 .2 1.0 .2 .2 .7 .1 (*) .4 .5 0 .5 0Utah .......................................................................... 36.7 5.7 23.1 1.1 9.1 1.0 2.4 7.7 .4 .2 .1 7.1 .5 5.2 .1Wyoming ................................................................... 6.9 .4 5.3 1.1 1.0 .1 (*) 2.6 .4 (*) (*) .7 .1 (*) .1

Far West:Alaska ....................................................................... 8.7 1.8 3.3 .1 .1 .4 .2 2.4 .4 (*) (*) 2.3 (*) 1.6 .9California .................................................................. 569.4 58.2 273.4 32.7 59.6 23.6 43.8 87.6 23.2 .8 6.0 203.9 12.4 162.9 3.8Hawaii ....................................................................... 50.1 1.2 6.9 2.1 .3 G .5 1.9 2.9 (*) .4 37.8 1.1 34.1 1.0Nevada ..................................................................... 25.5 7.5 12.0 2.6 3.7 .9 1.1 3.1 .4 .8 .2 4.6 1.7 2.7 .1Oregon ...................................................................... 52.0 6.5 28.6 2.4 14.4 1.3 1.7 5.2 .6 (*) .4 15.3 .3 13.3 .6Washington ............................................................... 86.6 17.1 45.4 4.1 14.4 3.8 6.1 10.4 1.5 .6 .5 19.9 .7 17.2 1.6

Puerto Rico ................................................................... 17.1 .2 13.0 1.6 2.8 .8 2.7 3.1 1.1 0 0 2.0 (*) 1.4 .9Other U.S. areas 1 ........................................................ 10.3 .2 3.2 G F .8 (*) .7 .3 0 0 6.6 (*) 3.6 0Foreign 2 ....................................................................... 2.2 .1 1.0 A .3 .1 .3 .2 .1 0 0 1.0 (*) .9 (*)

* Less than 50 employees.1. See footnote 3 to table 10.2. See footnote 4 to table 10.

NOTES.—Size ranges are given in employment cells that are suppressed. The size ranges are: A—1 to 499;F—500 to 999; G—1,000 to 2,499; H—2,500 to 4,999; I—5,000 to 9,999; J—10,000 to 24,999; K—25,000 to 49,999;L—50,000 to 99,999; M—100,000 or more.

Estimates for 1997 are preliminary.